Modern Tire Dealer - October 2013

GET READY FOR THE SEMA SHOW AND AAPEX!

THE INDUSTRY’S LEADING PUBLICATION

TOP 25 COMMERCIAL TIRE DEALERS SEE: • Increases in sales • Higher prices for fewer casings • A return on their investments

CUV&SUV

SEGMENTS BRANCH OUT

New tires meet growing demand

ALL-SEASON VS. WINTER TIRES

October 2013 | Vol. 94, No. 10 | $10 | A Bobit Publication | www.moderntiredealer.com

Quik-Link: 800-687-1557 ext. 21101

Te Industry’s Leading Publication October 2013, Volume 94, Number 10

Departments 4 Editorial Effective management

6 Online Tire Dealer of the Year -— revisited

8 News/views Is the Cooper-Apollo merger a good deal for all involved?

20 Your marketplace Tire sales show improvement

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50 European notebook All-season vs. winter tires

52 Counter intelligence Is the value of value losing its value?

Features

58 Focus on industry

22 CUV/SUV segments branch out

64 Focus on industry

Tire makers ofer larger rim diameters and more sizes

Hankook pushes for OE

Hankook sets sights on ‘top tier’

66 Focus on dealers

30 New CUV tires meet evolving OEM and consumer demands

Commercial Tire Dealer™ 35 Dealers made investments during the downturn to prepare for the upturn

But they now face higher prices for fewer casings

40 Top 25 U.S. commercial tire dealers 44 Before and afer you buf...

Retreaders rely on non-destructive testing equipment

48 Commercially viable Modern Tire Dealer is a proud member of:

It’s Millersburg time

67 Focus on industry Las Vegas to host industry trade shows

72 Focus on dealers Blueprint for success: Tour The Tire Choice

74 Focus on industry Pirelli’s premium strategy

76 Focus on industry Kumho introduces Ecsta PA31

78 TPMS Direct, indirect TPMS on Grand Prix

105 Your turn Is a government tire repair mandate better than doing what’s right on your own?

84 Products 87 Power Products 100 Quik-Link 101 Classifed

TRIB

TIRE RETREAD & REPAIR INFORMATION BUREAU

Member An Industry Association

www.moderntiredealer.com

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Editorial

Efective management

Run your business without ‘helping out’

T

wo young entrepreneurs each started 1963, “advertising and promotion should be a retread shop in the same city. One planned months ahead.” As an example, he said expanded his shop into a smoothly run a campaign to promote winter tires in August organization that provided new tires, brake and was planned in June. front-end work and other allied services. He Authors of “Te One Minute Manager” put eventually moved into wholesale, commercial a time stamp on successful management. Ken and retail sales as well.

Blanchard, a Ph.D., and Spencer Johnson, an Te other young fellow found the job of running M.D., say efective managers “manage themselves his shop too much for him, and he spent most of and the people they work with so that both the his time retreading tires along with his employees. By Bob Ulrich organization and the people proft from their He soon went out of business. presence.”

Why did one retreader succeed while the other failed?

Before you belitle their credentials, know this: No Both were ambitious. Both worked hard. less a tire dealer than Dan Hennelly embraces the book’s Te most successful businessmen know the answer to philosophy. Dan and his wife, Diane, are co-owners of that question. One of the retreaders was a manager who Hennelly Tire & Auto Inc. in Fort Lauderdale, Fla. Tey got things done through other people and reserved his grew their Te Tire Choice & Total Car Care chain from own time for thinking and planning. Te other was a darn one store to 35 in only nine years. good retreader who felt he had to do the job himself or it Oh, and they are winners of the 2013 MTD Tire Dealer of wouldn’t be done right. the Year Award. Executives from Michelin North America Te frst young man understood management. Te Inc. and Wal-Mart Stores Inc. also have benefted from second didn’t.

“Te One Minute Manager.”

The book reveals three “secrets” to one-minute management:

Efective managers need to be transparent with their goals and feedback.

Fify years ago, this story ran in Modern Tire Dealer as part of a special issue on the importance of good management.

Te late Fred Dresdale was geting ready to preside over the National Tire Dealers and Retreaders Association for one year. He was convinced that professional management was the answer to most of the problems encountered by independent tire dealers.

His street cred was impressive. As co-owner of Daleley Tire Service in Monsey, N.Y., he racked up $1 million in annual sales. Tat’s $7.6 million in 2013 dollars, or close to four times what the average tire dealer makes today.

“Every so ofen, I get the urge to help out in the plant,” he said. “Maybe change a tire or perform some job in the retread shop. When I get these urges, I try to remind myself that performing the task would take time from my main purpose — that of managing my business.”

Successful managers don’t have to share the same style of managing. Of a tire dealer’s many responsibilities, one of the most important in Dresdale’s opinion was merchandising.

He spent a considerable part of each day planning ad and promotional campaigns because, as he said in October

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1. Goal seting. It is important that everyone should know what is expected of them.

2. Praise. Te goal here is to encourage people to reach their full potential by pointing out what they are doing right.

3. Reprimands. In order to make sure employees take responsibility for their actions, a one-minute manager privately calls out people when they make mistakes. Te scolding is performance-oriented and never personal.

In summary, efective managers need to be transparent with their goals and feedback. “Goals begin behaviors,” say the authors. “Consequences maintain behaviors.”

As their business has grown, the Hennellys have found it necessary to give up running the day-to-day operations of their stores and delegate responsibility to others. As Diane says, if she and Dan had to do it over again, they would have hired a couple of right-hand people from the start instead of trying to do everything themselves.

Tey’ve learned their lesson. As they prepare for their next growth spurt, the Hennellys are already preparing to add more managers.

On the eve of the SEMA (Specialty Equipment Market Association) Show in Las Vegas, I thought it appropriate to run the same story we ran for the 1963 show. Focusing on good management never grows old. ■

If you have questions or comments, please email me at bob.ulrich@bobit.com.

MTD October 2013

Quik-Link: 800-687-1557 ext. 21102

Online MODERN TIRE DEALER

Website: www.moderntiredealer.com

Publisher Greg Smith Greg.Smith@bobit.com (330) 899-2200 ext. 12, fax (330) 899-2209

Editorial (330) 899-2200, fax (330) 899-2209 Editor: Robert J. Ulrich, ext. 11 Bob.Ulrich@bobit.com Managing Editor: Lori L. Mavrigian, ext. 16 Lori.Mavrigian@bobit.com Senior Editor: Bob Bissler, ext. 15 Bob.Bissler@bobit.com Associate Editor: Ann Neal, ext. 18 Ann.Neal@bobit.com

Production (330) 899-2200, fax (330) 899-2209 Art Director: Neal Weingart, ext. 14 Neal.Weingart@bobit.com Production Manager: Karen Runion, ext. 10 Karen.Runion@bobit.com

Sales

Tire Dealer of the Year – revisited Dan and Diane Hennelly are Modern Tire Dealer ’s 2013 Tire Dealer of the Year Award winners. In addition to reading about them in our September issue, you have the option of reviewing the article in our digital format, found toward the bottom of our homepage, or on our website by going to the Articles section on our top navigation bar and simply scrolling down to Dealer of the Year.

Once you click to the page, you have a number of options: the main story, dealer profle and side stories in the “Roads to success” section.

Want to see who won the award in years past? It’s easy to do. Simply click on Past Winners at the top of the page. There you will be directed to a landing page that has a collection of articles we wrote about our past winners, from Bob Sullivan of Sullivan Tire Co. Inc. in 2012 through Les Schwab of Les Schwab Tire Centers in 2000 – when our digital age began. (Information on our winners prior to 2000 is available in print.)

And if you want to nominate a worthy dealer for 2014, click on our Tire Dealer of the Year icon at the top of the page. It is linked to our nomination form. Fill it out and hit the submit button and we will do the rest.

Our deadline is May 23, 2014.

Total access — totally free www.moderntiredealer.com

South and Texas: Greg Smith Greg.Smith@bobit.com (330) 899-2200 ext. 12, fax (330) 899-2209 Midwest: Michele Vargo Michele.Vargo@bobit.com (330) 899-2200 ext.17, fax (330) 899-2209 West Coast: John Dyal /Te Dyal Company John.Dyal@bobit.com (760) 451-5026, fax (760) 451-5039 West Coast: Marianne Dyal /Te Dyal Company Marianne.Dyal@bobit.com (760) 451-9216 Automotive Aftermarket: Dan Tornton djtinc@gmail.com (734) 676-9135, mobile (313) 410-0945 Classifed Sales: Donna Stewart Donna_Stewart@cox.net (405) 260-1678, fax (405) 260-1684 Reprint Sales: Karen Runion Karen.Runion@bobit.com (330) 899-2200 ext. 10, fax (330) 899-2209

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MODERN TIRE DEALER (ISSN 00268496) (CDN IPM #40013413) (USPS #369-170) is published monthly by Bobit Business Media, 3520 Challenger St., Torrance, California 90503-1640. Periodicals postage paid at Torrance, CA 90503-9998 and additional mailing offces. POSTMASTER: Send address changes to MODERN TIRE DEALER, P.O. Box 1068, Skokie, IL 60076-8068. Please allow 6 to 8 weeks for address changes to take effect. Subscriptions in the U.S. and its possessions, $65; Canadian, $99; Int’l surface mail, $99; Int’l airmail, $198. Single copies, $10, except the January Facts Issue, $30. Address all subscription correspondence to MODERN TIRE DEALER, P.O. Box 1068, Skokie, IL 60076-8068. Please allow 6 to 8 weeks to receive your frst issue. Please address Editorial and Advertising correspondence to MODERN TIRE DEALER, 3515 Massillon Road, Suite 350, Uniontown, OH 44685-6217. The contents of this publication may not be reproduced either in whole or in part without consent of Bobit Business Media. All statements made, although based on information believed to be reliable and accurate, cannot be guaranteed and no fault or liability can be accepted for error or omission. For your information: We sometimes make our subscriber information (i.e. fax, e-mail or mailing address) available to carefully screened organizations whose products and services may be of interest to you. If you prefer not to have your information made available, please write MODERN TIRE DEALER, P.O. Box 1068, Skokie, IL 60076-8068.

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MTD October 2013

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News/views

Is the Cooper-Apollo merger a good deal for all involved?

Stockholders are not the only ones who need to be convinced Two groups of employees and a Chinese joint venture partner have doubts about the merger of Cooper Tire & Rubber Co. and Apollo Tyres Ltd. The October issue of Modern Tire Dealer went to press a few days before Cooper’s stockholders voted on the deal; at press time, Cooper said it was reviewing its options after an arbitrator blocked the sale of two of its U.S. plants to Apollo.

The arbitrator upheld two grievances fled by the United Steelworkers (USW) in a ruling issued on Sept. 13, 2013. The arbitrator ordered Cooper to put the sale of its plants in Findlay, Ohio, and Texarkana, Ark., on hold until Apollo and the USW can reach collective bargaining agreements covering about 2,500 USW members.

The ruling came despite Cooper’s assurance the collective bargaining agreements would continue after the Despite an arbitrator’s decision to merger. In a June block the sale of two U.S. plants, 12 press release, Cooper says the merger with Apollo is expected to close by the the company end of 2013. stated it “will continue to recognize the labor unions and honor the terms of collective bargaining agreements presently in effect while generally maintaining compensation and beneft levels for non-union employees.”

The USW says its members are concerned about the debt that will be placed on Cooper. In June, Cooper agreed to be acquired by Apollo in an all-cash transaction valued at approximately $2.5 billion.

Apollo is borrowing the $2.5 billion purchase price.

“From my knowledge of the situation, I think the workers at Texarkana and Findlay ultimately want to see the deal closed. That said, given the high amount of leverage needed to close the deal, they want to see their interests protected,” says Nick Mitchell, senior vice president of research for Northcoast Research Holdings LLC based in Cleveland, Ohio, and MTD columnist.

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He says the USW likely wants to see Apollo invest a certain amount of capital in the plants.

“I think the issue boils down to the USW wanting to know Apollo is committed to maintaining U.S. manufacturing at the same level as Cooper. One way to gain confdence in this is by requiring capital improvement investments to keep the plants competitive.”

Pension funds may be a consideration, too. “It’s possible given the high leverage of the deal that the USW wants a multiyear framework to shore up the funding status of the pension plans,” says Mitchell.

Cooper said it is “assessing its options” in a U.S. Securities and Exchange Commission fling on Sept.

19. “Apollo and Cooper are continuing discussions with the USW with the aim of reaching an amicable resolution,” says Anne Roman, vice president of corporate communications for Cooper.

Concern over debt also is behind labor tensions at Cooper’s passenger and truck tire plant in Rongcheng, China. The Rongcheng plant is a joint venture between Cooper (the majority owner at 65%) and Shandong Chengshan Group Co. Ltd. According to The Courier in Findlay, Ohio, workers at the Chinese plant “are skeptical of the fnancial underpinnings of Apollo’s proposed $2.5 billion acquisition.”

After a strike to protest the deal, employees went back to work producing non-Cooper tires. Says Roman, “Regarding the labor action at Cooper Chengshan (Shandong) Tire Co., Cooper continues to communicate with the union, the workers and the JV partner with regard to returning the Rongcheng plant to full operation as soon as possible.”

Cooper’s Chinese partner also opposes the deal and fled a lawsuit to dissolve the joint venture.

“As to the lawsuit fled by the JV partner, Chengshan Group, to dissolve the joint venture, it has been reported that the hearing in Weihai Intermediate Court has been postponed to an undetermined date,” says Roman.

“Cooper believes the lawsuit is without merit and will defend vigorously against it. Cooper has at all times acted within all applicable laws and the applicable parameters of the joint venture.”

— Ann Neal

MTD October 2013

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News/views

bites

GM honors suppliers Perfect Equipment Inc. and a wheel weight facility in Bowling Green, Ky., operated by the Bada division of Hennessy Industries Inc. have each received a 2013 General Motors Supplier Quality Excellence Award.

It is the second year in a row for both companies to earn the honor from General Motors Corp.

Tracy joins TBC TBC Corp. (TBC), one of the nation’s largest marketers of automotive replacement tires, has named Regina Tracy director of corporate communications. She has more than 25 years of experience in public relations and marketing communications.

TCS has new headquarters TCS Technologies, a provider of technology solutions to the tire and auto service industries, has moved to a newly renovated 20,000-square-foot, 80-room office in Cookeville, Tenn. This marks the company’s third office expansion in five years.

Don Orrell joins Centric Parts Centric Parts has hired Don Orrell for the new position of director of sales and marketing, medium-duty.

Centric Parts is a North American manufacturer and supplier of aftermarket brake components and systems.

Hofmann sponsors PCA Hofmann Power Weight, a division of Wegmann Automotive GmbH & Co. KG, announced that it has entered into a partnership with the Porsche Club of America (PCA) as the official sponsor of PCA Club Racing using the Hofmann Type 380 wheel weight.

ASA celebrates 25 years ASA Automotive Systems, a provider of software systems and services, celebrated 25 years in business at its annual InfoExpo conference in Nashville, Tenn.

The company featured the next generation of its TireMaster software, which performs pointof-sale, inventory-management, and other financial processes for independent tire dealers.

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Big O Tires store marks 40 years Big O Tires in Dublin, Calif., celebrated its 40th year as a tire and automotive service retailer in September at a customer event that included prize drawings for a set of Big O brand tires and a set of wheels.

The company donated proceeds from concession sales to Alex’s Big O Tires in Dublin, Calif., marked 40 Lemonade Stand Foundation, an years with three generations of the Bruce organization dedicated to fnding Cherry family involved in operations.

From the left are: Jessica (Bruce’s daugha cure for childhood cancer. ter); Jeff (Bruce’s brother); Jason (Bruce’s son); Bruce; and Kevin Kormondy, COO The Dublin location was and executive vice president. opened in 1973 by brothers Ken and Stan Cherry. Ken’s son Bruce started as a sales person in 1980 and later became an owner, along with business partner Greg Mitchell. Today, Bruce’s son, Jason, and daughter, Jessica Johnston, are also involved in the business, spanning three generations of a family operation.

“We have truly enjoyed serving the Dublin community for their tire and auto service needs over the past four decades,” says Bruce.

The Dublin location is one of six Big O Tires stores that the Cherry family owns and operates in Northern California. Bruce was inducted into the Big O Tires Hall of Fame this past April in honor of his contributions to the Big O Tires brand.

“The Dublin store’s commitment to outstanding customer service has been a part of their legacy since day one,” says Kevin Kormondy, COO and executive vice president of Big O Tires LLC. Big O Tires is one of six brands that operates under TBC Corp., which is number two on the 2013 MTD 100 list of independent tire dealers.

Pep Boys buys 17 Discount Tire stores and makes a $5.4 million proft The Pep Boys-Manny, Moe & Jack acquired 17 Discount Tire Centers in Southern California from AKH Co. Inc. in September and announced a $5.4 million proft in the second quarter.

(Discount Tire Co. Inc., the largest independent tire dealer in the United States, does business in California as America’s Tire. It is based in Scottsdale, Ariz.)

The 17 stores are located in the greater Los Angeles market. The acquisition brings the number of the company’s Service & Tire Centers to 211. Pep Boys has more than 750 locations nationwide.

The company posted net income of $5.4 million on net sales of $527.6 million for its 13-week second quarter ended Aug. 3, 2013. That compares to income of $33 million on sales of $525.7 million for the same period last year.

The company’s income-to-sales ratio was 1%. Operating income rose 25.1%, from $15.5 million to $19.4 million. Comparable store sales decreased 1.3%. Comparable service center revenue was down 0.1% quarter to quarter, while comparable retail sales were down 2.6%.

MTD October 2013

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News/views

bites

RR680 is SmartWay-verified Double Coin Holdings Ltd. and China Manufacturers Alliance LLC (CMA) announced that the Double Coin RR680 tire has met the requirements for the U.S. Environmental Protection Agency’s SmartWay Technology Program for the steer and drive positions.

Monroe offers prepaid cards The Monroe “Shocktober” promotion from Tenneco Inc. offers consumers a chance to earn a Visa prepaid card equal to the lowest cost unit of qualifying Monroe and Rancho shocks or struts purchases.

The promotion began Sept. 1 and runs to Dec. 2.

ALI tests online in Canada Canadian candidates enrolled in the Automotive Lift Institute (ALI) Lift Inspector Certification Program now can take the two required program exams online at various testing centers across Canada. ALI had previously offered only paper and pencil versions on specific dates.

Federal promotes MUFC After launching a partnership with the Manchester United Fan Club (MUFC), Federal Corp. has started a series of promotional activities in Russia and in Taiwan. Since Sept.

1, 2013, all product shipments to Russia and to Taiwan from Federal have had stickers attached with Federal and MUFC’s logos.

DENSO adds mobile access DENSO Products and Services Americas Inc., an affiliate of DENSO Corp. of Japan, has added mobile functionality to My DENSO Rewards, a sales incentive program for warehouse distributors, jobbers and professional technicians who sell and install DENSO cabin air filters and wiper blades in the U.S. and Canada.

Mitchell 1 will award trip Mitchell 1 will award an allexpense paid trip in early 2014 to the winner of its “Winter Escape to San Diego” sweepstakes. The sweepstakes is open to Mitchell 1 ProDemand subscribers and runs now through Oct. 31, 2013.

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TIA names seven to seats on board of directors for 2013-2014 term The Tire Industry Association (TIA) has flled seven seats on its board of directors for the 2013-2014 term.

Three returning members are among those elected to the TIA Board for 2013-2014. The new members are Anthony Blackman, Atlantic Tire & Service, Inc., Cary, N.C.; Ernie Caramanico, Amityville Firestone, Amityville, N.Y. (returning); Lyssa Da Costa, Hercules Tire International, Kitchener, Ontario, Canada (returning); Joseph Henmueller, Automotive Maintenance and Repair Association (AMRA)/Motorist Assistant Program (MAP), Arlington Heights, Ill.; Brian Rigney, Dill Air Controls, Oxford, N.C.; and Tom Wright, Wright Tire Service, Anoka, Minn. (returning).

Additionally, Jon Schadl of K&M Tire in Delphos, Ohio, was placed into the two-year board vacancy that was created by the election of Glen Nicholson, TBC Retail Group, to the position of secretary.

Bob Bignell, executive director of the Ontario Tire Dealers Association, will be the new state/provincial representative on the board.

Six seats were available this year, each with a three-year term. The new board will take offce on Monday, Nov. 4 at TIA’s annual meeting at the Cosmopolitan of Las Vegas in Las Vegas, Nev.

Firestone promotional tour shifts to NCAA college football games Bridgestone Commercial Solutions, a business of Bridgestone Americas Tire Operations LLC, shifted its Firestone Drives America Tour from minor league baseball to NCAA college football games. The tour is a cross-country road show that introduces new Firestone commercial truck tires to feets and drivers. The road show is scheduled to visit eight college football games this fall.

“The Firestone Drives America Tour summer stops were a great success, providing fun experiences for thousands of attendees, The Firestone Drives America Tour is part of the including a chance to ÒThose With Drive, Drive a FirestoneÓ campaign, learn about our latest which kicked off in March 2013.

Firestone commercial truck tires — the FS591 steer, FD691 drive, and FT491 all-position radials,” says Matthew Stevenson, vice president of marketing, Bridgestone Commercial Solutions.

The road show stopped at 12 minor league baseball games this summer. At each stop, a local food bank was given a donation, with a total of $15,000 contributed.

The tour is part of the “Those With Drive, Drive a Firestone” campaign.

The campaign includes a contest where one Class 8-CDL holder will win a special Firestone Edition Class 8 tractor. The Firestone Drives America Tour concludes at the 2014 Mid-America Trucking Show in Louisville, Ky.

MTD October 2013

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News/views

Kumho rewards consumers As part of a promotion from Sept.

1- Oct. 31, 2013, Kumho Tire U.S.A. Inc. is launching the new Ecsta PA31 high-performance, all-season tire and offering a $50 prepaid Visa reward card with the purchase of a set of four qualifying tires.

Trelleborg has new apps Trelleborg AB, the global parent company of Trelleborg Wheel Systems Americas Inc., will release three mobile apps at Agritechnica 2013 Nov. 10-16 in Hannover, Germany.

Gabriel offers $125 rebate Between Sept. 1 and Oct. 31, 2013, Gabriel (Ride Control LLC) is offering consumers a mail-in rebate for up to $125 with the purchase of four qualifying products. Gabriel has created a video, “Top Ten Warning Signs of Worn Shocks and Struts” for consumers to view at its website and YouTube channel.

VDO video on HOS rules Continental Commercial Vehicles & Aftermarket has released “EOBR Mandate Solution,” a video on how the VDO RoadLog Electronic On Board Recorder (EOBR) can help fleets comply with the Federal Motor Carrier Safety Administration Hours of Service (HOS) regulations.

Pirelli is in a new stock index Pirelli & Cie SpA is the only tire company in the Global Compact 100, a new stock index launched by the UN Global Compact in partnership with research firm Sustainalytics. Pirelli says the companies are selected for their commitment to the Global Compact ten principles, executive leadership commitment, and consistent base-line profitability.

Centric Parts adds director Centric Parts has named Poh Wah Lee, Ph.D., to the new position of director of friction materials sciences. The company says the appointment of a preeminent researcher focused on copper-free formulations marks an expansion of its R&D program.

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Toyo Tire & Rubber Co. Ltd. announced that Tomoshige “Tomo” Mizutani became president of Toyo Tire Holdings of Americas Inc., located in Cypress, Calif., effective Oct. 1, 2013.

Mizutani has led the Nitto brand in the U.S. since 1992 and has served as president of Nitto Tire U.S.A. Inc. since July 1, 2005. He will continue to serve as a corporate offcer for Toyo Tire & Rubber Co. Current president Noriyuki Dan will continue to serve as the chief fnancial offcer of Toyo Tire Holdings. Keiko Brockel, current chief operating offcer of Nitto, will be appointed president in addition to her role as president of Nitto Tire Canada Inc.

Photo provided by Toyo.

bites

Toyo names new president in North America

Tomoshige “Tomo” Mizutani succeeds Noriyuki Dan as president of Toyo Tire Holdings of Americas Inc. in Cypress, Calif.

TIA to offer health insurance solution The Tire Industry Association (TIA) has announced a self-funded group employee benefts solution for its members through an alliance with The Association Benefts Solution (TABS).

“TIA has been exploring solutions to the health insurance dilemma for quite some time. We believe TABS’ unique solution may be a great option for many of our members. We anticipate signifcant savings and improved coverage for those who participate,” says TIA Executive Vice President Roy Littlefeld.

TABS is a unit of National General Insurance and is an employee benefts insurer focused on association and affnity groups.

In the program, TIA members will be able to choose from two provider networks: Cigna and Aetna. The TABS program, through its partnership with a number of national trade associations, already serves close to 300 employers representing approximately 20,000 covered people. TABS can accommodate employers located in all states except Hawaii and the plans comply with the Patient Protection and Affordable Care Act. Dental, vision, disability and life insurance products are also available.

TIA Director of Membership Wilson Beach says, “We have heard from many of our members that fnding an affordable benefts solution in response to health care reform is a top concern for their business.”

Indian cars to have Schrader TPMS Schrader International Inc. announced it has been awarded a contract for its tire pressure monitoring system (TPMS) from Mahindra Reva Electric Vehicles Private Ltd., a subsidiary of Mahindra & Mahindra Ltd., one of India’s largest vehicle manufacturers.

As part of the agreement, Schrader will provide TPMS technology and the company’s advanced “snap-in” valve sensor to Mahindra Reva’s electric vehicle e2o. The TPMS-enabled e2o may be exported to the European market in 2014.

“We source a majority of the leading car companies globally and to provide our TPMS technology for next generation electric cars of India’s leading electric vehicle manufacturer is great news for our company,” says Stephen McClelland, managing director, electronics.

MTD October 2013

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News/views

dates

October 19-22 American Trucking Association Management Conference & Exhibition, Orlando World Center Marriott, Orlando, Fla. (703) 838-1700 www.truckline.com October 28-30 The Future of Tire Technology Conference presented by Smithers Rapra Inc., Omni Hotel, Charlotte, N.C. (207) 781-9635 www.futuretiretech.com November 5-7 Automotive Aftermarket Products Expo (AAPEX), Sands Expo Center, Las Vegas, Nev. www.aapexshow.com November 5-8 Specialty Equipment Market Association (SEMA) Show and the Global Tire Expo — Powered by TIA (Tire Industry Association), part of Automotive Aftermarket Industry Week (AAIW), Las Vegas Convention Center, Las Vegas, Nev. (800) 876-8372 www.tireindustry.org www.semashow.com February 6-7 North Central Tire Dealers & Suppliers Association Mid-Winter Conference and Trade Show, Treasure Island Resort & Casino, Red Wing, Minn.

(952) 544-6805 www.northcentraltiredealers.com March 6-8 Louisiana Tire Dealers Association annual Convention and Trade Show, Bourbon Orleans, New Orleans, La. (225) 767-7640 www.litda.org March 6-8 Tyrexpo Africa, Sandton Convention Centre, Johannesburg, South Africa +44 (0) 1892 863888 www.eci-international.com

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STS to sponsor 2014 Special Olympics Somerset Tire Service (STS Tire & Auto Centers) has signed on as a silver level partner for the 2014 Special Olympics USA Games and will be the presenting sponsor of the 2014 USA Games Athletics Competition at Weaver Stadium on the campus of Princeton University.

The 2014 Special Olympics USA Games will be hosted by New Jersey, June 14-21, 2014. As presenting sponsor of athletics, STS will be recognized throughout Weaver Stadium and in all external communications at the 2014 USA Games. STS will be highlighting its partnership with the 2014 USA Games in much of its marketing initiatives over the next year, including billboards and radio advertising.

“Partnering with the 2014 Special Olympics USA Games provides STS with a unique opportunity to give back to the communities we serve by embracing the overall mission of the Special Olympics. As a 100% employee-owned New Jersey-based company, we’re proud to be sponsoring athletics and look forward to supporting the athletes as they demonstrate their incredible determination and spirit to succeed,” says Bill Caulin, president of STS. STS Tire & Auto Centers is the largest independent tire and automotive service company in the Northeast, with retail locations throughout New York, New Jersey and Pennsylvania. It is number fve on the Modern Tire Dealer 100 list of top independent tire dealers in the U.S.

Tire’s Warehouse taps Tagliaferri Tire’s Warehouse Inc. (TWI) has hired Gino Tagliaferri for the position of manager, commercial sales and marketing. The company says the newly created position will be instrumental in its growth and expansion plans.

Tagliaferri has extensive experience in the commercial tire business with posts at China Manufacturers Alliance LLC and CMA Inc., which included national implementation of commercial tire sales programs.

For the past nine years he was regional sales manager for American Pacifc Industries, which is the exclusive U.S. importer of Gladiator tires.

“Gino is an integral member of our commercial sales team, and this addition takes us another step closer to our overall expansion plans,” says Dan King, president of TWI. “We are already a dominant force in the consumer products segment and with over 60 delivery trucks and 400,000 square feet of warehouse space, TWI is primed to provide the best service for our commercial customers as well.”

More than 7,000 attend China show Reliable International Exhibition Services Co. Ltd., organizer of the 11th annual China International Tire Expo (CITEXPO), says more than 7,000 members of the global tire industry attended the event.

Of the 7,303 registered visitors, 3,040 came from 101 countries.

There were 335 exhibitors at the show, which was held Sept. 4-6 in Shanghai. In addition, 80% of the exhibition space was sold for next year during this year’s show.

The organizer also says the 2013 show was a tremendous success with most of the exhibitors increasing their exhibit space to accommodate more high-valued professional buyers.

The 12th annual CITEXPO will be held in the same location Sept. 1012, 2014. ■

MTD October 2013

Quik-Link: 800-687-1557 ext. 21110

Your marketplace

Although still less than robust, tire sales show improvement

D

ealers reported that new passenwere experienced in July. Dealers reported ger tire sales in August improved that they sold 0.1% more new tires last modestly from July as sales of month on a year-over-year basis, which passenger units rose 0.1% year-overcompares to the 0.3% decline reported year following a 0.3% decline. While we in July. More importantly, August is the would acknowledge the fact that 0.1% frst time that the respondents in our is essentially fat with sales trends a year survey noted that year-over-year sales ago, it is nevertheless positive, which is trends increased since February. Truck something that we have not seen since tire volumes were up as well, as dealers February. Moreover, it is encouraging as By John Healy and Nick Mitchell reported that their sales increased 1.0% the dealers that we speak with experienced following a 3.6% increase in July. In the a 1.1% decline just two months ago. Despite the fact that retread business, volumes were of 0.7% in August afer the sales data is less than robust, we view the incremental being down 4.0% in July. improvements very favorably. Te anecdotal commentary we have heard from the channel about the release of pent-up Selling prices and costs continued to fall demand, combined with the optimistic outlook of dealers Survey respondents reported that their efective cost for and the strong shipment data being reported by the Rubber top-selling branded tires fell 1.1% while opening price point Manufacturers Association, leads us to believe that we are, tires were almost 1.6% less in August. Not surprisingly, in fact, in the early stages of a rebound in demand trends. the lower efective costs are partially related to increased manufacturer promotional activity. For example, 73% of Monthly survey passenger tire dealers characterized manufacturer pricing A number of independent tire dealers were surveyed as aggressive in August (up sharply from 50% in July), concerning current business trends. Except for tire prices and while 80% of truck tire dealers believed that manufacturer costs, the results of the August 2013 survey are compared promotions have increased, which is in-line with 86% in July. with those of August 2012.

Te favorable costs that dealers saw benefted consumers as well, as retail tire prices for premium tires fell 0.4% in August, while prices on value brands fell 0.3%.

How dealers view near-term business Dealers

APR

MAY

JUN

Passenger tire Will improve Will worsen Will stay level

36% 0% 64%

47% 12% 41%

29% 7% 64%

46% 9% 45%

46% 0% 54%

60% 20% 20%

Truck tire Will improve Will worsen Will stay level

30% 10% 60%

47% 20% 33%

19% 17% 64%

29% 0% 71%

53% 0% 47%

38% 24% 38%

R-Revised

JUL(R) AUG(P) AUG(12)

P-Preliminary

Inventories: tire inventories were litle changed

Forty-seven percent of passenger tire dealers believed inventories were too high (vs. 41% in July), while the balance (53%) believed inventory levels were just right (vs.

59% in July). For the third straight month, dealers reported much cleaner inventory levels in the truck tire business, as 9% of the truck tire dealers we surveyed indicated that inventories were too high (vs. 29% in July), while 80% said it was just right (vs. almost 61% in July) and 11% actually said that they were too low.

Service revenues: sharp pick-up helps August sales General outlook: pessimism vanishes

According to our dealer survey, 46% of passenger tire dealers believed business will improve over the next six months while 54% believed it will stay about the same.

Meanwhile, 53% of the truck tire dealers we spoke with saw business improving and 47% believed that business trends will stay about the same. In short, the collective outlook of the tire dealers in our sample has become more optimistic.

New tire sales: tire volumes increased in August

According to dealer reports, replacement tire demand in August improved very modestly from the results that

20

Results of past surveys showed that service business slowed down in June and July. However, it appears that it picked up sharply in August, as tire dealers noted that this category, which accounted for almost 30% of the total revenues of the study participants, increased 4.3% in August, compared to the 0.7% and 2.0% increases that they reported in June and July, respectively. â–

John Healy and Nick Mitchell are research analysts with Northcoast Research Holdings LLC based in Cleveland, Ohio. Healy and Mitchell cover a variety of subsectors of the automotive industry.

MTD October 2013

Quik-Link: 800-687-1557 ext. 21111

feature

The Nexen N’Priz RH7 is the OE ftment on the 2014 Mitsubishi Outlander.

CUV/SUV segments branch out Tire makers ofer larger rim diameters and more sizes

By Bob Bissler

T

here are plenty of reasons for tire makers to be optimistic about the CUV and SUV tire markets in the United States.

A declining unemployment rate and a rebound in housing have created good economic conditions, and consumers are spending money on vehicles. Tey’re also driving more, and a growing number of the vehicles they choose to drive are CUVs. According to R.L. Polk & Co., nearly one million more new CUVs were purchased in the U.S. in 2012 than in 2008 at the height of the economic downturn. Consumers purchased 2.28 million new CUVs in 2008 and 3.24 million in 2012.

During that time, SUV sales did not fare as well. In 2008 there were 1.27 million new SUVs sold to U.S. consumers; in 2012 it was 1.18 million, a decrease of more than 88,000.

While the CUV segment continues to grow, the SUV segment is still holding ground.

“Te SUV/LT segment, in both vehicles and tires, reached

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a recent high mark in 2007, but then dipped sharply from 2008 to 2010 before beginning a steady upward growth trend in recent years,” says a spokesperson for Goodyear Tire & Rubber Co. “Tis is atributable to the functionality of these vehicles, easing credit that helped the vehicle sales gains, and more stable fuel prices.”

Consumers are holding onto their cars for longer periods of time. Polk says the average age of CUV and SUV vehicles (segments combined) on the road is 8.98 years as of Jan. 1, 2013, up 1.66 years from 7.32 years in 2008. Tis shif is creating replacement tire opportunities for tire makers and dealers.

SUVs are hanging in there

Tere are still more SUVs on the road than CUVs. “Te SUV replacement tire market is showing signs of an uptick and should see 2% growth over the next three years,” says Michael Burns, marketing manager at Del-Nat Tire Corp.

MTD October 2013

Quik-Link: 800-687-1557 ext. 21112

CUV and SUV trends According to Polk, as of July 2013, the total number of CUVs on U.S. roadways was 26.9 million, making up 11.1% of vehicles in operation (VIO). But plenty of SUVs are still being driven, as they make up 13.4% of VIO at 32.6 million.

Polk classifes CUVs and SUVs under the light truck umbrella.

Te Rubber Manufacturers Association (RMA) classifes them diferently as far as tires are concerned.

“We put CUV and SUV tires in the passenger tire category,” says Dan Zielinski, RMA’s senior vice president of public afairs.

“Our members may separately segregate them according to size and put some as CUV and others as SUV.” Zielinski says the RMA does not separate CUVs and SUVs from the passenger tire category because RMA members may classify them somewhat diferently for their own purposes.

According to the RMA, the CUV and SUV replacement tire market is coming out of the slump the industry was seeing from 2010 to 2012, when RMA member passenger tire units fell from 49.5 million units to 47.5 million.

Te market is anticipated to come back to 48.6 million units in 2013, with a three-year compound annual growth rate at 2.2%. Sport utility and crossover vehicles still claim approximately one-third of the spots on the top vehicle sales rankings, a statistic that’s been holding steady for some time

now. RMA members are not expecting any big changes in the near future.

Like Polk, Modern Tire Dealer classifes CUVs and SUVs in the light truck category, but like the RMA, these vehicles’ tires are considered to be in the passenger tire category. According to the 2013 MTD Facts Issue, replacement tire sales for passenger tires remained relatively fat the last two years, totaling $24.7 billion in 2012 and $25 billion in 2011. Te total number of passenger replacement units shipped in the U.S. has dipped slightly in the last fve years, from a total of 195 million in 2008 to 192.7 million in 2012.

OE units shipped have come back steadily since the recession, when total units dropped from 39 million in 2008 to 25 million in 2009, recovering to a total of 40.7 million units in 2012. As the OEMs keep up with consumer demand for more CUV models every year, tire makers keep up with the trend.

“I think a lot of tire manufacturers are starting to build products just for the CUV market,” says John Aben, senior vice president of sales and marketing at Nexen Tire America Inc. “CUVs are similar to SUVs, but there are a lot of sizes that the SUV tread paterns wouldn’t necessarily ft. Some of the manufacturers, including Nexen, are looking to expand their patern designs for CUVs.” The Yokohama Parada Spec-X was designed for the Range Rover and other SUV models driven by customers who want tires with strong performance and a sporty look.

Quik-Link: 800-687-1557 ext. 21113

CUV and SUV trends Aben says because the tread paterns on SUV tires make more noise, they aren’t well-suited to the typical CUV driver.

“CUVs are smaller than SUVs, but the people driving them don’t want to hear noise,” says Aben. “Tey’re more into comfort.”

Rim diameters keep growing

While consumer demand for comfort and utility increases, rim diameters are increasing as well.

“A major trend we have identifed in both CUVs and SUVs is the preference for larger rim diameter ftments,” says Justin Hayes, product manager, Bridgestone Americas Tire Operations LLC, U.S. & Canada Consumer Tire Sales Division. “When SUVs came to prominence in the late 1980s and early 1990s, the market was dominated by 15- and 16-inch ftments. Te same was true for CUVs as they emerged in the early 2000s.”

Hayes says now we are seeing a rapid shif toward 18-, 19- and 20-inch ftments, with even some 22-inch tires on more premium vehicles.

“Mainstream CUVs like the new Ford Escape and Chevrolet Equinox have 19-inch options, and luxury CUVs like the Infniti FX and the Lincoln MKX have 21- and 22-inch options, respectively,” says Robert Abram, product planning manager at Yokohama Tire Corp.

Te rapid shif to larger rim diameters by OEMs has led to

H-, V- and T-rated tires with shorter sidewalls, according to Stephen Peters, light truck specialist at Michelin North America Inc. Te overall diameter has not increased signifcantly.

“For example, 20-inch and larger sizes, which were once leaning more to niche applications, have become vastly more mainstream,” says Peters. “With GM moving to 22-inch wheels on SUVs such as the Cadillac Escalade and GMC Yukon, consumer impressions on accessibility of these tires has also

‘Because the tread patterns on SUV tires make more noise, they aren’t well-suited to the typical CUV driver.’ — John Aben, Nexen Tire America Inc. changed. Many dimensions previously associated with large passenger cars are now found on smaller CUVs.”

OEMs lead the charge

“OEMs are releasing more crossover variants, so the tire industry has responded with sizes and paterns to cover these

new vehicles,” says John Wu, assistant product manager for Maxxis International. “It is defnitely a growing market segment, and Maxxis will be watching it closely.”

As tire makers keep up with increasing demands at the OEM level, they are also challenged to anticipate future trends.

“For the OE market, we see increased emphasis on performance and reduced rolling resistance, reduced wet and dry stopping distances, improved snow traction and reduced noise levels,” says Steve Carpino, vice president of research and development, Pirelli Tire North America Inc. “We expect to see requests for improved tread wear.”

In the replacement market, the trends are reducing wet and dry stopping distances and reducing noise levels, according to Carpino, in addition to increasing tread wear.

“We will likely see an increased emphasis on rolling resistance as labeling regulations are implemented in the U.S.” Fuel efciency drives demand for low rolling resistance tires.

It has also fueled the trend toward lighter-weight vehicles.

“Te CUV and SUV market is evolving from vehicles with a truck-based body-on-frame chassis, to a car-based unibody chassis,” says Joe Maher, product manager, passenger and winter tires for Continental Tire the Americas LLC. “Vehicles are trending smaller into more of a station wagontype vehicle, and vehicle owners expect a car-like ride and handling.

“Large SUVs historically have been truck-based, but many are moving to car-based construction with an (auto) body style that communicates ‘truck.’”

What lies down the road?

What do the shifing CUV/SUV markets mean for tire dealers?

“Te CUV market is a rapidly growing and changing segment as these newer vehicles age into their frst and second tire replacement cycles,” says Bridgestone’s Hayes. “SUVs have been around for a litle longer, and their sales volumes have not yet regained the peak levels seen in the early 2000s.”

“Te CUV market continues to grow at the expense of the larger SUV models and traditional passenger vehicles,” says Scot Jamieson, director of product management at Cooper Tire & Rubber Co. Jamieson says the CUV is the new family vehicle and will continue to have higher speed ratings and larger rim diameters than SUVs and passenger vehicles.

“To the consumer this is their ‘car’ or their ‘truck,’” says David Shelton, marketing director for GITI Tire (USA) Ltd. “Te distinction of CUV or SUV means very litle to them. When the consumer describes his vehicle as a car or a truck they are giving clues to the dealer regarding the tire characteristics they expect. CUV owners desire more car-like characteristics.”

Te CUV segment will continue to grow as consumers require more space and utility and move toward more efcient vehicles, according to Maxwell Wee, director of sales, Sentaida International Inc. But he also remains optimistic about SUVs. “Te SUV segment is also rebounding as vehicle manufacturers start to roll out car-based SUVs to improve efciency.”

“CUV is still a growing market as more vehicle manufacturing is moving toward a unibody structure for fuel efciency and cost advantages,” says Fardad Niknam, senior director of

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CUV and SUV trends

According to R.L. Polk & Co., the non-luxury compact CUV segment, which includes the Toyota RAV4 (above), is a thriving market; other compact CUVs include the Ford Escape, the Honda CRV and the Chevrolet Equinox.

CUV or SUV?

Unibody vs. body-on-frame construction According to Tom Libby, senior forecasting analyst with R.L. Polk & Co., the general rule for differentiating between the CUV and SUV segments is if the vehicle is car-based, if it’s on a unibody construction, then it’s categorized as a crossover. If it’s a truck body-on-frame architecture, then it’s categorized as an SUV. An example of a CUV is the Ford Escape (unibody construction), whereas the Ford Expedition (body-on-frame construction) is classifed as an SUV. Under the light truck category, which Libby says is an umbrella category, Polk includes pickups, CUVs, SUVs and vans.

“CUVs are doing very well. The non-luxury compact CUV segment is thriving and that includes the Ford Escape, the Toyota RAV4, the Honda CR-V and the Chevrolet Equinox. That segment is a real sweet spot in the market and it’s growing hugely.”

While SUVs still make up 13.4% of vehicles in operation, Libby says this segment is declining.

“The non-luxury compact SUV segment is dwindling. That includes the Jeep Wrangler and the Nissan Xterra.”

Libby says there are not a lot of other vehicles in the SUV category because of the success of CUVs. “To compete with the RAV4, the Escape and the Equinox, manufacturers are developing more car-based vehicles. The truck-based group is losing out.”

product planning and technical services for Toyo Tire U.S.A. Corp. “Te SUV market took a downturn during the recession, but is now coming back to the level it was before the fnancial meltdown.”

“Similar to the touring tire market, fuel efciency, wear and comfort have become more important characteristics for CUV and SUV tires in the market,” says Eric Yang, automotive marketing manager at Kenda U.S.A., a division of American Kenda Rubber Industrial Co. Ltd. “New constructions and compounds have allowed tire makers to improve all these characteristics dramatically.”

“As consumers trend further and further toward fuel efciency, I expect growth in CUV ftments to become much stronger,” says Del-Nat’s Burns. “Competition for share of the dealer’s screen will be signif-

28

cant. CUV drivers want a high-quality tire at a low cost.”

Goodyear says retailers will need to continue to focus on the needs of CUV and SUV drivers, including daily driving as part of an active lifestyle and of-roading on the weekends. Tese consumers depend on their SUVs and CUVs and they keep them well-maintained so their vehicle is always ready for multi-use.

“Most auto manufacturers have developed hybrid CUVs and SUVs like the Ford Escape and Toyota Highlander,” says Bridgestone’s Hayes. “For these vehicles, the preferred tire not only has a larger rim diameter, but also has a low rolling resistance, which helps vehicles achieve beter overall fuel efciency. Tese are the types of emerging demands that are expected from products in this segment.” ■

MTD October 2013

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feature

New CUV tires meet evolving OEM and consumer demands

By Bob Bissler

A

s OEMs continue to produce more variations of CUV vehicles, tire makers are up to the challenge of keeping them rolling on the correct tires.

Just in time for the 2013 Specialty Equipment Market Association (SEMA) Show Nov. 5-8 in Las Vegas, tire makers have CUV tires to launch and other established models to show of.

Here’s what tire makers told us they’ll be showcasing, and some share their plans for the future of CUV tires.

The Bridgestone Dueler H/L 422 line is the frst Ecopia product line tire designed specifcally for the CUV tire market.

Bridgestone Americas Tire Operations LLC

30

Continental Tire meets the demands of CUV customers with the CrossContact LX20 and with the new General Tire Altimax RT43 and Grabber HTS lines. New sizes and lines are updated as needed to stay in tune with the market.

Cooper Tire & Rubber Co.

Cooper is very active in developing new CUV sizes with a focus on ride, handling and mileage. We have a range of new 19- and 20-inch CUV/ SUV sizes scheduled to launch in the next few months as additions to our Cooper Discoverer CTS, Mastercraf Courser HSX Tour, Cooper Discoverer A/T3 and Mastercraf Courser AXT lines.

VP1. SUV products are found in the Savero HT2 product line. As the CUV market continues to grow and dedicated sizes increase, expect a number of manufacturers to ofer a dedicated product line for the CUV category.

Goodyear Tire & Rubber Co.

Goodyear designates CUV products with a “CS” label. Examples are the Goodyear Assurance CS Fuel Max, Goodyear Assurance CS TripleTred and Dunlop Signature CS. Te newest Goodyear tire is the Wrangler AllTerrain Adventure with Kevlar, a tire for light trucks and SUVs. It soon will be available in 44 sizes.

Hercules Tire & Rubber Co.

We are expecting the release of the new Delta Sierradial AT Plus and National Commando AT Plus soon and have recently fnalized plans to add more CUV sizes to our Delta Esteem Plus and National Ovation Plus lines.

Te Hercules RoadtourXUV is a crossover-specifc tire that aims at delivering fuel-efciency and a quiet ride to consumers. We’ll be debuting a new SUV ofering at the SEMA Show, the Hercules Terra Trac HTS. Ofered in 26 SUV/LT SKUs, the Terra Trac HTS is designed to deliver stable, comfortable highway travel.

GITI Tire (USA) Ltd.

Kenda U.S.A.

Del-Nat Tire Corp.

At Bridgestone we ofer a wide range of tires for the CUV market, including our Bridgestone Dueler H/L 422 Ecopia, available in 20 sizes ranging from 215/65R16 to 245/50R20.

We will have new sizes in early 2014.

The Continental CrossContact LX20 is available in 39 sizes ranging from 215/70R16 to 285/45R22.

Continental Tire the Americas LLC

Te GT Radial CUV oferings include the Maxtour and the Champiro

The Cooper Discoverer A/T3 is available in 32 LT sizes ranging from LT235/75R15 to LT305/55R20.

At the moment, Kenda does not have a tire specifcally for the CUV market;

Del-Nat will soon launch the Sierradial AT Plus engineered with a taller bead fller and a new silicainfused tread compound.

The GT Radial Champiro VP1 for CUVs is available in 56 sizes ranging from 175/70R13 to P235/65R18.

MTD October 2013

Quik-Link: 800-687-1557 ext. 21116

New CUV tires

The Goodyear Wrangler All-Terrain Adventure has traction ridges combined with open shoulder blocks for off-road traction.

The Hercules RoadtourXUV features low rolling resistance and is available in one H- and three T-rated sizes.

however we do plan to launch a new CUV tire shortly. With our current KR15 SUV/CUV tire, we are looking to expand the range in the 16-, 17- and 18-inch diameter sizes.

Maxxis International

In designing the Escapade CUV tire, Maxxis engineers developed a new technology called the Adaptive Response Sidewall to elevate the overall performance of a CUV tire.

32

The Kenda KR15 was designed for improved ride comfort and is available in 18 sizes ranging from P235/60R14 to P235/75R15.

Te technology allows the tire to be compliant around town but sharpens up during spirited drives.

Nexen Tire America Inc.

Nexen has launched a new CUV patern called N’Fera RU5, that is specifcally designed for CUV replacement, and two new SUV products, the Roadian HTX and Roadian ATPro, which it started taking orders for in September 2013.

Quik-Link: 800-687-1557 ext. 21117

The Maxxis Escapade with multi-pitch tread blocks comes in 13 sizes from 225/65R17 to 255/50R19.

Pirelli Tire North America Inc.

We have product lines for the CUV/ SUV market such as the Scorpion Verde All Season. It ofers drivers increased performance in wet braking, dry handling, wet handling and snow traction, and it reduces aquaplaning.

In addition, through decreased rolling resistance compared to its previous all-season tires and an 8% reduction in weight, the Scorpion Verde All Season lowers CO2 emissions.

MTD October 2013

Quik-Link: 800-687-1557 ext. 21118

New CUV tires

The Nexen N’Fera RU5 is available in 18 sizes ranging from 225/55R18 to 285/45R19.

The Pirelli Scorpion Verde AS all-season tire is available in 27 sizes from 16- to 20-inch rim diameters.

Sentaida International Inc.

The Sentaida Landsail CLV2 is available in seven sizes ranging from 235/60R16 to 235/60R18.

34

We have three new patterns coming out: the Landsail CLV2 in 16- to 18-inch rim diameters; the Landsail CLV6 in 17- to 26-inch rim diameters; and the Delinte DH2 in 16- to 18-inch rim diameters. Sentaida will soon be adding sizes to its Landsail CLV2 line also.

The Toyo Versado CUV is available in 17- through 20-inch rim diameters, with widths ranging from 215 mm to 275 mm.

The Yokohama Avid ENVigor is available in 78 sizes ranging from 145/65R15 to 265/50R20 for CUV drivers.

Toyo Tire U.S.A. Corp.

Yokohama Tire Corp.

Te Versado CUV is designed to have a smooth, quiet ride, good handling and low-rolling resistance.

We always look at the CUV and SUV markets, and also upcoming vehicles from OEMs in order to make sure our new tire sizes follow the evolving trends with these vehicles.

Quik-Link: 800-687-1557 ext. 21119

Yokohama chooses to attack the CUV segment with multiple tread paterns that can ofer diverse and different driving experiences for consumers. Te Avid ENVigor covers customers with a spirited driving style who want more of a highperformance feel from their vehicle’s tires. ■

MTD October 2013

Commercial Tire Dealer™

Dealers made investments during the downturn to prepare for the upturn But they now face higher prices for fewer casings

By Ann Neal

T

he companies on the Modern Tire Dealer 2013 Top 25 United States Commercial Tire Dealers list are making a post-recession comeback. Fourteen of them recently opened or are planning to add outlets in 2013. In addition, nearly all of the top dealers are experiencing year-over-year increases in commercial sales.

Dealers also are reporting that the expiration of Tarif 421 (the nickname for the 25% tarif on consumer tire imports from China) in September 2012 is creating new challenges for their retreading operations.

to expand our service area through acquisition,” said Mick Pickens, Royal Tire president.

Dealerships are ranked according to MTD’s exclusive formula, which determines a point total for each company. Te list is made up of the companies with the highest 25 point totals, and the fnal rankings are based on estimated commercial sales.

Where are the casings?

With the exception of Royal Tire, the dealers on the list are identical to last year. However, their retreading operations are facing new challenges from the increase in new truck tire imports. Instead of expanding the pool of available casings in the retread market, sales of import tires Litle change at the top are puting pressure on supply and prices The top five spots for 2013 are of casings because of a quality issue. held by the same dealers in the same “Market adoption of import comorder as in 2012. Southern Tire Mart mercial tires that are difcult to retread LLC, based in Columbia, Miss., is is driving the demand and pricing for frst with 50 commercial-only outlets, quality casings higher,” said a top retreader 12 combination commercial-retail who declined to be named. outlets and 17 retread plants.

A percentage of import tires are difcult Best-One Tire & Service of Monto retread, which may limit the growth roe, Ind., came in at number two. Te of the retread market, according to the dealership has 67 commercial-only retreader. “If a customer buys a Tier outlets, 119 combination outlets One or Tier Two commercial tire, it and 17 retread plants. Pomp’s Tire can be retreaded three or four times. If the same customer puts 18 imports on Service, based in Green Bay, Wis., ranked third with 29 commercial-only a truck, a retreader may not be able to outlets, 45 combination outlets and accept the tires for retreading. For every 12 retread plants. import tire sold, that’s potentially one Snider Tire Inc. of Greensboro, less tire in the pool for casings for the N.C., holds the number four spot. stock retread market.”

It has 44 commercial-only outlets The warranty provides a clue to a and six retread plants. casing’s integrity for fleets trying to Tom Bowman says Belle Tire has become a Fifh in the ranking is Les Schwab one-stop service provider for feets. minimize a tire’s life-cycle costs through a Tire Centers of Bend, Ore., which has retreading program. “Te Tier 4 product 445 combination outlets and three retread plants. grouping has a very limited casing warranty on it,” said Tom New to this year’s list is Royal Tire Inc. with 16 commercial- Bowman, vice president, commercial division, for Belle Tire only outlets and three retread plants. Te purchase of two Distributors Inc., which commercial service locations and a Bandag franchise helped is No. 15 on the compush Royal Tire to 21 in this year’s rankings. Te St. Cloud, mercial tire dealer list.

Minn.-based company purchased St. Paul Tire in Newport, “You have to look at the Top 25 commercial tire dealers in the Minn., and acquired Midstates Retreading & Wholesale and a value, and the value is United States . . . 40 commercial service location from Northwestern Tire Co. Inc. in the casing. You have Before and after you buff: Retreaders Royal Tire opened its newest outlet in May 2013 in Wil- customers in niche areas rely on non-destructive testing equipliston, N.D. “We are continuing to look for opportunities where all they look for is ment . . . 44 Commercially viable . . . 48

ALSO IN CTD

www.moderntiredealer.com

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Top 25 U.S. commercial tire dealers price but the value is not there, especially for cradle-to-grave programs for feets.”

Te Tier One and Tier Two companies ofer a complete

existing customers and developing new oferings aimed at diferent business segments.

In 2010, Service Tire expanded its mechanical oferings in response to its customers’ changing business models. Companies wanted common carriers that could move their freight on dedicated routes outside the transportation provider’s established distribution network.

“Te for-hire carriers have equipment outside of their normal network, and they need someone to maintain that equipment.

We put together a network of locations for companies looking to outsource their mechanical services. Our customers are used to dealing with our billing, personnel, procedures and culture on the tire side, so it is easy to roll more mechanical services into a beneft for them,” said Bennet.

By the end of 2013, Service Tire will have 11 mechanical locations operating under the “Service Tech” brand name.

Te company introduced the Service Tech brand earlier this year to help diferentiate tire services from the mechanical Tom Bowman, Belle Tire side of the business.

Service Tire added large mining tires and solid tires to its menu of support services with their products, says Bowman. earthmover ofering, a market segment they had served since “In Tier Four, it’s a la carte, and you get a tire with a limited the early 1980s. In August 2013, Service Tire was certifed warranty.” Bowman says the Chinese plants are running at into the Michelin Earthmover Repair Accreditation program.

70% capacity. “Tey still have 30%. As we move forward, the Te company branded its 24-hour emergency road service Big 3 and the Tier Two companies really need to get their “Road Assist” in 2010 and recently improved the ofering. In arms around this.” addition, Service Tire has opened three outlets since May Scot Bennet, vice president of sales for Service Tire Truck 2013. A new location in Aberdeen, Md., provides mechanical Centers Inc., says the ability to retread casings of import tires and tire services. Commercial-only outlets were opened in remains in question despite improvements in quality. “Overall, Syracuse, N.Y., and Winchester, Va. their products are improving, and that is puting a lot of pressure Te investments are paying dividends for Service Tire. on Tier Two companies to prove out their “Ear thmover sales value. Te question of the sustainability of will increase for us in their product will remain with Tier Tree 2013. For mechanical, and Four companies.” our goal for 2013 is a Bennet says Tier Two products are chaldouble-digit percent of lenging Tier One on value. “We’re seeing our overall business. We faster growth with Tier Two products because diversifed every part of of good sustainability, good casings and good our business. Diversifyperformance on tread life. Te value of some ing allows us to beter Tier Two compared to Tier One proves out.” control our own destiny Bethlehem, Pa.-based Service Tire is No. 6 and have sustainabilon the commercial tire dealer list. ity as a company,” said Bennet.

Investments are paying of Like Service Tire, AlAlthough the pressures on the supply and Service Tire Truck Centers expanded and branded its len Park, Mich.-based price of casings are afecting their retread vehicle maintenance services in 2013. The company Belle Tire continued to mobile maintenance through locations operations, many of the nation’s top dealers provides invest in its business and operating under the name Service Tech. are seeing their investments in expanded expand service oferings capabilities and geographic coverage over the last few years during the global recession. The company’s more recent pay of in growing sales. investments include replacing all shearography equipment Te economic downturn challenged all commercial tire at its three retread plants in the last six months. Four of the dealers to fnd ways to be stronger competitors, enter new latest model Bandag Insight casing analyzer machines were markets, and position themselves to serve their customers installed. “It’s new technology that was introduced a year ago. as the economy recovers.

Te equipment is expensive but worth its weight in gold,” Bennet calls the years 2009 and 2010 “the right-sizing said Bowman. era” of the economy. “We saw many of our customers sell Te new equipment is helping Belle Tire meet the demand of equipment and go out of business. Tere was less wheel for retreaded tires. “A lot of feets are buying retreads now position for us to sell due to the reduction in commercial that weren’t a few years ago. Large feets generate their own feet sizes.” Te company focused on growing business with casings. We try to get two, three or four retreads on them,

‘A lot of feets are buying retreads now that weren’t a few years ago.’

36

MTD October 2013

Quik-Link: 800-687-1557 ext. 21120

Top 25 U.S. commercial tire dealers

Belle Tire Distributors, Inc. Best-One Tire & Service Boulevard Tire Center Callaghan Tire Inc. Commercial Tire Inc. Donald B. Rice Tire Co.

Graham Tire Co. Les Schwab Tire Centers McCarthy Tire Service Inc. Pete’s Tire Barns Inc. Piedmont Truck Tires Inc. Raben Tire Co. Inc.

depending on how long the customer wants to keep the tire and its position,” said Bowman.

In addition to its retreading operations, Belle Tire ofers Tier One, Two and Tree portfolios of services to its feet customers. Te company has expanded its oferings to become a one-stop provider for feet customers. New oferings include a windshield repair and replacement service introduced in 2012 and heavily promoted in 2013. Belle Tire also expanded its trailer readiness program. “We dabbled in it before; we are more involved now. It’s another service ofering that ties us to our customers. All trailer technicians are ASE- and TIAcertifed,” said Bowman.

Te company recently installed a heavy-duty truck alignment machine at its Toledo location and is considering installing one at its Cleveland facility. Belle Tire already provides heavy-duty truck alignment at its Allen Park operation. “We always look at new technology to see what we can do to serve our customers.”

Dealers change with the market

MTD surveyed 45 commercial tire dealers to develop this year’s list of the top 25 dealerships.

We asked dealers how marketplace changes were afecting their business and what they were doing to adapt. Here’s what they told us.

Best-One Tire & Service, No. 2, Pete Glesing, director of

38

Royal Tire Inc. Service Tire Truck Centers Inc. Snider Tire Inc. Stratham Tire Inc. Sullivan Tire Co. Inc. Valley Tire Co. Inc.

commercial development: “We are continuously looking for additional sales opportunities. We continue to ofer large feet customers a one-stop shop.”

Boulevard Tire Center, No. 10, Earl Colvard, president: “Expanding retread capacity, adding new equipment and adding truck alignment in some locations.”

Commercial Tire Inc., No. 18, Bob Schwenkfelder, CEO: “We are moving one Bandag retread facility into a new, larger building to keep up with our growth in retreading. Te Tier Tree import truck products are defnitely growing and taking a larger percentage of the medium truck market.”

Jack’s Tire and Oil Management Co. Inc., Bob Feldbauer, CEO/ president: “Casing supply is still an issue in the marketplace.”

McCarthy Tire Service Inc., No. 7, Neil Horn, vice president: “We are always investing in new retread equipment to update our plants and adding capacity. We have increased our capacity on truck mechanical to help ofset the increasing national account business.”

Nebraskaland/Kansasland/Coloradoland Tire Group, No. 25, Nick Phillippi, general manager: “We will be looking at retread equipment in Q3 to increase capacity and possibly to do superwide retreading.”

Piedmont Truck Tires Inc., Mitch Glover, vice president: “Te industry is going more and more to big buying groups and national accounts. We are methodically growing so our

Quik-Link: 800-687-1557 ext. 21121

MTD October 2013

ability to service a broader area is enhanced. We are continuing to ofer niche products such as earthmover repair, tire fll and rim refurbishing. Service is the key to geting and keeping customers. We are ofering 24-hour, seven-day-a-week service with certifed employees who will do an excellent job.”

Purcell Tire & Rubber Co., No. 8, Paul Long, vice president of purchasing: “Spending more time and money on training our associates.”

Sullivan Tire Co. Inc., No. 20, John Donovan, vice president: “Growing mechanical services, increasing OTR service feet and driver training on safety and compliance.”

Valley Tire Co. Inc., No. 22, Jim Stankiewicz, president: “Valley Tire now is doing heavy-duty truck repair under the name of TruxTex.” Ziegler Tire & Supply Co., William Ziegler, president: “Adding light mechanical to our truck ofering.” ■

www.moderntiredealer.com

How our rankings are determined

To make the MTD Top 25 U.S. Commercial Tire Dealers list, a dealer has to: 1) sell truck tires, 2) have at least one retreading plant, and 3) offer 24/7 road service.

Point totals are tabulated based on number of outlets.

Each commercial-only outlet received two points and each retread plant received one point. The number of combination commercial/retail stores is multiplied by the estimated percentage of commercial sales, and then multiplied by two. The highest 25 point totals make up the list, and then the dealers are ranked based on estimated commercial sales.

Quik-Link: 800-687-1557 ext. 21122

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Top 25 U.S. commercial tire dealers Rank Company, Headquarters, Website 1. Southern Tire Mart Columbia, Miss. www.stmtires.com 2. Best-One Tire & Service Monroe, Ind. www.bestonetire.com

Comm.

Only/ Combo Truck Tire Brands 50/12 Bridgestone, Firestone, Continental, General, Yokohama, Michelin, BFGoodrich 67/119 Bridgestone, Firestone, Mastercraft, Roadmaster, Continental, General, Michelin, Goodyear, BFGoodrich, Uniroyal, Yokohama 29/45 Bridgestone, Continental, Dayton, Firestone, General, Goodyear, GT Radial, Michelin, Yokohama 44/0 BFGoodrich, Continental, Goodyear, Michelin, Yokohama

2012 Retread Service Comm.

Shops Trucks Sales Points 17 500 $730 134 million

Dick Borgman, CEO

0/445

Ronald Bennett, CEO

40/2

John McCarthy Jr., president

28/13

Robert Purcell, president

20/34

Jerry Bauer, chairman/CEO

Chief Offcer Thomas & James Duff, owners Paul Zurcher, chairman

17

450

$325 million

232

12

295

$305 million

138

6

200

$275 million

94

Toyo, Ohtsu, Double Coin, Gladiator, Michelin, Bridgestone, Firestone

3

1,500

$271 million

181

BF Goodrich, Goodyear, Kelly, Michelin, Roadmaster, Yokohama, Dunlop Bridgestone, Firestone, Continental, General, Yokohama, Kelly, Dunlop, Double Coin Dunlop, Goodyear, Michelin, Kelly, Yokohama, Hankook

4

243

$219 million

87

6

424

$209 million

86

5

216

$208 million

87

18/12

Michelin, BFGoodrich, Bridgestone, Firestone, Kumho, Hercules

7

82

$165 million

60

BFGoodrich, Bridgestone, Continental, Dunlop, Firestone, General, Goodyear, Michelin, Roadmaster, Yokohama BFGoodrich, Bridgestone, Double Coin, Continental, Firestone, General, Michelin, Roadmaster, Yokohama Bridgestone, Continental, Cooper, Firestone, General, Michelin, Titan, Yokohama Michelin, BFGoodrich, Goodyear, Dunlop, Kelly, Continental, General, Yokohama, GT Radial, Roadmaster Bridgestone, Firestone, Continental, General, Michelin, Hankook, Toyo, Yokohama Bridgestone, Continental, Dunlop, Firestone, Goodyear, General, Michelin, Roadmaster, Yokohama, Dayton, Kelly Bridgestone, Firestone, Continental, Goodyear, General, Roadmaster, Yokohama Goodyear, Dunlop, Kelly, Michelin, Aeolus, Hankook

5

121

$136 million

42

2

125

$125 million

30

3

169

$110 million

29

3

116

$108 million

29

5

230

$103 million

29

3

130

$91 million

128

5

70

$89 million

38

2

28

$84 million

37

3. Pomp’s Tire Service Green Bay, Wis. www.pompstire.com 4. Snider Tire Inc. Greensboro, N.C. www.snidertire.com 5. Les Schwab Tire Centers Bend, Ore. www.lesschwab.com 6. Service Tire Truck Centers Inc. Bethlehem, Pa. www.sttc.com 7. McCarthy Tire Service Inc. Wilkes-Barre, Pa. www.mccarthytire.com 8. Purcell Tire & Rubber Co. Potosi, Mo. www.purcelltire.com 9. Bauer Built Inc. dba Bauer Built Tire Durand, Wis. www.bauerbuilt.com 10. Boulevard Tire Center Deland, Fla. www.boulevardtire.com

Jim Wochinske, president

Earl Colvard, president

17/3

11. Parkhouse Tire Inc. Bell Gardens, Calif. www.parkhousetire.com 12. Cross-Midwest Tire Co. Kansas City, Kan. www.crossmidwest.com 13. Raben Tire Co. Inc. Evansville, Ind. www.rabentire.com 14. Tredroc Tire Services* Antioch, Ill. www.antiochtire.com 15. Belle Tire Distributors Inc.* Allen Park, Mich. www.belletire.com

Jim Parkhouse, CEO

14/0

Greg Trum, president

13/0

Thomas Raben, president

2/16

16. Bob Sumerel Tire Co. Erlanger, Ky. www.bobsumerel.com 17. Graham Tire Co. Sioux Falls, S.D./Spencer, Iowa www.grahamtire.com

John Snider, president

Stevan Weakley, 12/0 CEO Don Barnes Jr., president

12/97

Bob Sumerel, CEO

13/4

Bob and Tom 5/25 Graham, owners

* Does not include Belleroc Tire Services, a joint venture between Tredroc Tire Services and Belle Tire Distributors.

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MTD October 2013

Quik-Link: 800-687-1557 ext. 21123

Top 25 U.S. commercial tire dealers Rank Company, Headquarters, Website 18. Commercial Tire Inc. Meridian, Idaho www.commercialtire.com 19. Pete’s Tire Barns Inc. Orange, Mass. www.petestire.com 20. Sullivan Tire Co. Inc. Norwell, Mass. www.sullivantire.com 21. Royal Tire Inc. St. Cloud, Minn. www.royaltire.com 22. Valley Tire Co. Inc. Charleroi, Pa. www.valleytire.com 23. Black’s Tire & Auto Service Whiteville, N.C. www.blackstire.com 24. Tire Guys Inc./Tire-Rama Inc. Billings, Mont. www.tirerama.com 25. Nebraskaland/Kansasland/ Coloradoland Tire Group Lexington, Neb. www.thetirestore.com

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Comm.

Only/ Combo Truck Tire Brands 8/30 Bridgestone, Firestone, Yokohama, Roadmaster, General, Continental

2012 Retread Service Comm.

Shops Trucks Sales Points 3 141 $78 54 million

0/18

Bridgestone, Firestone, Michelin, Continental, Double Coin, General

2

121

$75 million

33

Robert Sullivan, president

15/0

Bridgestone, Firestone, Goodyear, Dunlop, Kelly, Double Coin

3

83

$70 million

33

Mick Pickens, president

16/0

Bridgestone, Firestone, Michelin, Toyo, Roadmaster

3

50

$65 million

35

Jim Stankiewicz, 11/10 president

BF Goodrich, Continental, General, Michelin, Sumitomo, Yokohama

1

55

$64 million

39

Rick Benton, president

1

105

$55 million

35

David Wehr, CEO 0/45 and president

Goodyear, Dunlop, Kelly, Continental, Roadmaster, Ohtsu, Double Coin, Westlake, Hankook Bridgestone, Firestone, Roadmaster, Yokohama

1

30

$50 million

46

Gary Wright, president

Goodyear, Dunlop, Kelly, Mastercraft, 4 Michelin, Roadmaster, Aeolus

62

$45 million

31

Chief Offcer Bob Schwenkfelder, CEO Peter Gerry, president

0/34

4/19

MTD October 2013

Quik-Link: 800-687-1557 ext. 21124

Non-destructive testing

Before and after you buff...

Retreaders rely on non-destructive testing equipment

By Bob Bissler

S

uccessful truck tire retreaders know that preparing a casing for retreading is an exact science. The visual inspection of a used truck tire is not enough to make sure all the faws and nail holes have been detected.

Non-destructive testing (NDT) also is required. With computer-controlled NDT machinery, a retreader can produce a fnal product that ofen provides more miles than a new tire.

And at less expense. According to the 2013 Modern Tire Dealer Facts Issue, the average price of a new truck tire is $425; the average price of a retreaded truck tire, including the casing, is $230.

“Shearography falls within the NDT category,” says David Stevens, managing director of the Tire Retread & Repair Information Bureau (TRIB). “Some people say, ‘Tat’s an NDT machine,’ and some say, ‘Tat’s a shearography machine,’ but basically you’re talking about looking inside the tire without destroying it.”

In many retreading operations, shearography is the NDT method of choice, but it’s not the only one. Here are some of the companies that supply NDT equipment, which helps raise your professional standards and makes you a more viable supplier.

A separation inside a tire creates a space, and over time air migrates into it. To detect the air bubbles and other faws, the casing (without the rim) is put into the Intact’s vacuum chamber for under-pressure loading. One measurement is taken at standard ambient pressure, and then the pressure is reduced by 5%. Tis is a minor change, says Huber, but it increases the diameter of any air bubbles in tread separations.

“Te increasing air bubbles deform the tire’s surface by microns,” says Huber (a micron is one-millionth of a meter).

“Tat surface deformation can be measured using shearography.”

Michelin Retread Technologies Inc.

According to Mary Ann Kotlarich, commercial public relations director at Michelin North America Inc., Michelin supplies complete retread processes to its franchisees, including shearography, through its Michelin Retread Technologies (MRT) subsidiary. Called the Casing Integrity Analyzer (CIA) system, this proprietary equipment, imaging and analysis system for casing inspection is only available to MRT franchisees.

MRT has shearography equipment in 100% of its plants and requires its use on all casings afer initial inspection. One of them is Valley Tire Co. Inc., which has one MRT facility in Charleroi, Pa. “In our system, we have NDTs [grazing light/electronic liner inspection, advanced X-ray] for the initial inspection,” says Jim Stankiewicz, president of Valley Tire Co. Inc. “We buf next and then we put them into the shearography. We have two Michelin shearographs.”

Stankiewicz has been an MRT retreader since 2007. He says every operator has to be certifed on each piece of equipment.

“Our shearographs will pick up normal separations,” says Stankiewicz. “It’s automated and does everything — rolls the tires in, closes the doors, reads eight diferent segments on a tire and gives you printouts. Te operators know what to look for and it’s all computerized.”

Marangoni Tread North America Inc. The Intact Tire Test System from Steinbichler Vision Systems Inc. horizontally loads truck tires into its vacuum chamber and measures the tires in eight sectors to detect faws. The company says it can detect 95% of faults.

Steinbichler Vision Systems Inc.

“Shearography is a very sensitive, laser-based inspection technology similar to holography,” says Rainer Huber, NDT product manager at Steinbichler Vision Systems, manufacturers of the Intact Tire Test System.

“We use the technology to fnd air bubbles and separations in casings for tire retreading. Tires with major air bubbles inside are not valid for retreading, because they would fail during usage.”

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According to Giampaolo Brioschi, product marketing manager for Marangoni Tread North America, a division of Marangoni SpA, the Marangoni IT 3000 SFER is the company’s most technical and sophisticated piece of tire inspection equipment ofered.

“Te IT 3000 SFER is an NDT machine based on the technology of vacuum chamber shearography. Te machine has been designed to identify any belt and tread separations before the bufng procedure. Te inspection system is integrated in a complete measuring head with laser diode.”

Brioschi says the IT 3000 SFER’s principle of testing is based on a comparison between a frst interference image of the tire surface and a second interference image of the deformed

MTD October 2013

The ITT 3000 SFERA from Marangoni SpA provides “beadto-bead” inspection without turning the tire. In addition, the non-destructive inspection shearography machine offers an automatic loading and unloading system.

state at decreased pressure. Te diference between these two conditions is processed and then displayed on a video screen.

Te SFER, developed by Marangoni SpA, can be used both for the frst and fnal inspection of the tire, he says. “Tat’s the only way to be sure about the quality of the retreaded tire casing.”

Goodyear Tire & Rubber Co.

“Te Goodyear Tire & Rubber Co. does not mandate the use of shearography,” says Todd Labbe, general manager, commercial retread, Goodyear Commercial Tire Systems. “We do ofer shearography equipment for our Goodyear Authorized Retreader Network, but only a few of our retreaders use it on a regular basis as part of their process.”

Labbe says Goodyear has conducted evaluations for detecting separations via shearography and diferometric images,

www.moderntiredealer.com

both of which have demonstrated the ability to detect some separations in casings.

“However, neither technology detects separations of all sizes and locations within a tire in the retread production environment. Tere also can be some difculty in reading the images, which can result in the rejection of good casings.”

Labbe says that shearography is only a small part of the tire inspection process, and it is valid only for indicating possible separations in the tire. It will not work in an area that has been punctured, as this disrupts the vacuum that needs to be part of the system for indicating a separation.

“Shearography has not been found to be fool-proof and may be prone to ‘false-positives’ (i.e. the indication of a separation when none exists) and therefore, may actually cause an increase in the rejection rate of sound tires.”

At Goodyear’s Wingfoot Commercial Tire Systems retread facilities, electronic discharge devices fnd nail-hole casing penetrations that can be difcult to detect visually. Wingfoot retreaders also use a multi-level pressure system to detect weak or broken cords in the upper sidewalls of casings that have not been detectable via other inspection methods, such as X-ray.

“Inspection will continue to be an important part of the retread process, and is a step in the process that technicians should never skip.”

Hawkinson Companies

Te Hawkinson NDT by Hawkinson Companies, a division of Branick Industries Inc., uses electrical impulses to detect

Quik-Link: 800-687-1557 ext. 21125

45

Non-destructive testing casing faws. It is a high-voltage tire inspector that the company says is standard equipment for many retreaders. Te Hawkinson NDT’s electrical impulses detect nails, nail holes, cuts, tears and bad repairs that are not visible to the naked eye.

“Te big diference between the Hawkinson NDT and a shearograph is that the NDT works on a high-voltage sys- The tem,” says Calvin Sperr, general Hawkinson NDT is a high-voltage sysmanager at Hawkinson. “It fnds tem that performs a 17-secany type of penetration in the ond test. When it fnds a tire whether it be a nail hole or faw in the tire, it will arc to some type of puncture to the that spot and the operator mark where it is and tire that would cause problems can send it off for repair. The afer retreading. A shearography unit also inspects for sidemachine runs under a vacuum wall defects three-quarters system which looks for separa- up the side of the tire. tions in the belt package in the tire.”

Te Hawkinson NDT inspects casings prior to bufng and can test up to 200 tires per day. Since it is independent from bufng, it does not slow down the retreading process, notes the company. Te unit also can be used to inspect tires afer

46

bufng, afer repairs and at fnal inspection afer retreading.

Sperr says retreaders also use the NDT before shearography because if there is a nail hole, it must be repaired frst.

“Shearography runs under vacuum and punctures have to be sealed up, otherwise the pump is not able to create the proper vacuum to correctly fex the sidewall of the tire.”

The Hawkinson NDT machine has been used by tire remanufacturers such as Michelin Retread Technologies, Bridgestone Bandag LLC and Wingfoot Commercial Tire Systems for nearly 30 years.

The Bandag 7450 Insight uses shearography to scan sidewalls and locate ply failures. Flaws will show up on the unit’s monitor when it displays an image of the scan.

Quik-Link: 800-687-1557 ext. 21126

MTD October 2013

Bridgestone Bandag Tire Solutions LLC

Te Bandag 7450 Insight Casing Analyzer uses shearography to scan crown/beads/sidewalls and locate ply failures. Te company says that when Bandag dealers upgraded their casing inspection capabilities with this new technology, feets started to notice improvements in retread reliability. (Te unit is only available to Bandag franchisees.)

Flaws will show up on the unit’s monitor. Te operator can select any section of the tire for further investigation. A truck tire can be completely scanned in minutes, and no lifing is required of the operator. Te result is a dynamic image that shows the surface of the crown, bead, sidewall or inner liner.

Any measured change will be displayed and may indicate a defect in the casing.

Continental Commercial Vehicle Tire

Te Continental Commercial Vehicle Tire business unit of Continental AG recommends that its retreaders invest in pressure testing equipment in addition to conventional shearography. Te company suggests using shearography as the fnal method of performing casing inspection to verify radial sidewall strength.

“Also known as a ‘boom box’ for the loud sound made if a tire ruptures at the highest infation stage, the Matuezzi G100 machine recommended by Continental’s ContiLifeCycle retread

Retreading trend

Marangoni pioneered shearography Marangoni Tread North America Inc., a division of Marangoni SpA, says it was a pioneer in producing shearography inspection equipment in 1998. According to Giampaolo Brioschi, product marketing manager, the market for shearographs was strong when the new technology was introduced, and in recent years it has become more stable.

“Our research and development department is continuously and fully committed to improve and to fnd out innovative solutions in such an important sector as tire casing inspection,” says Brioschi.

According to Rainer Huber, NDT product manager at Steinbichler Vision Systems Inc., two major retreading trends today are making the use of shearography systems increasingly necessary.

“First, casings are becoming harder to source due to weaknesses in the new tire market,” says Huber.

“Due to the growth of new tire manufacturers getting involved in retreading, they strive to retain ‘their’ casings within their own systems.

“Second, there has been a new focus in recent years on quality among medium-sized retreaders, and that is becoming ever more important. Both customers and the competitive business environment demand this.

To retreaders who continue to believe that they can’t afford investments of around $130,000, an investment in shearography has always been crowned with economic success for those who have taken the step.”

www.moderntiredealer.com

The Mattuezzi G100 machine, recommended by Continental for its ContiLifeCycle retread process, utilizes three stages of inspections, which are measured at 25 psi, 65 psi and 115 psi, to reveal faws in casing sidewalls.

process engineers utilizes three stages of visual inspections,” says John Barnes, Continental’s manager of ContiLifeCycle activities in the Americas.

Different inflation pressures are used during the three inspection stages, which are measured at 25 psi, 65 psi and 115 psi. Te pressure levels are adjustable.

At the 25 to 65 psi levels measured by the G100, distinct ripples or waves can sometimes be detected in the casing’s sidewall, which indicates a weakened or broken steel body ply section.

“A casing sidewall section of this type could rupture under operating conditions, something that no retreader — or feet — wants to experience. Inspecting a casing under pressure as the fnal step can help identify tread and casing separations, missed repairs, other tire deformities and of-center treads. Some of these deformities can be missed, even with conventional shearography.”

Barnes says the result of this pressure testing is the peace of mind ofered to both feets and installers that the casing has been proven sound at operating infation and the retreader has taken multiple steps against zipper ruptures.

“A casing rupture at these infation pressures can be deadly, so we encourage our retreaders to make the additional investment in the G100 or similar pressure testing equipment.”

Barnes says that because of the increased focus on safety and non-destructive testing in recent years, most reputable retreaders are aware of the need for complete and thorough inspections. Advocacy for safety by industry groups has made shearography, infation cages and advanced training in retread practices fairly commonplace. However, Barnes said they may not realize that the extra step of pressure testing is a quick and afordable process.

“Continental’s ContiLifeCycle retread process engineers estimate that carrying out pressure testing takes only an additional two minutes per tire, and costs only an additional 74 cents per retread. It’s well worth the investment. Continental helps our ContiTread licensed retreaders to obtain this equipment at an afordable cost, which pays of in terms of safety to their employees and their customers.” ■

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Commercially viable Redesigned VDO RoadLog website adds videos Continental Commercial Vehicles & Aftermarket unveiled a refreshed edition of its VDO RoadLog website that features the new VDO RoadLog Electronic On Board Recorder (EOBR) for daily log book and other compliance reporting. A key educational component has also been added with a collection of comprehensive how-to and training videos covering topics such as HOS compliance, EOBR mandate solution, EOBR buyers guide, EOBR installation and tips for law enforcement. All of the videos are viewable from laptops, tablets and mobile phones. Additionally, the new site serves as one-stop shopping for literature and reference material, ranging from a quick overview of the VDO RoadLog EOBR to a complete EOBR user manual.

CONTINENTAL COMMERCIAL VEHICLES & AFTERMARKET Quik-Link: (800) 687-1557, ext. 21160 www.mtdquiklink.com/21160

Dual drive retread from Oliver Rubber The Vantage Max Drive from Oliver Rubber Co. is a U.S. Environmental Protection Agency SmartWay-verifed drive position retread for line-haul applications. It is designed for single and tandem axle tractors and provides both long mileage and increased fuel savings for fleets. The Vantage Max Drive, at 19/32-inch of tread depth, is available in four sizes: 205, 210, 220 and 230. Oliver’s proprietary compounding delivers low rolling resistance, increased fuel savings and excellent tread wear. It also features Oliver’s exclusive VDI plus feature that acts as a visual depth indicator, helping to enforce pull points while also resisting the retention of road debris. All Oliver retreads carry a national warranty to 2/32-inch of tread depth.

OLIVER RUBBER CO. Quik-Link: (800) 687-1557, ext. 21161 www.mtdquiklink.com/21161

Green giant loader tires from OTRUSA.com The Grunload line of giant loader tires from OTRUSA.com comes in sizes 45/65R45 and 45/65R39.

Grunload tires are remanufactured in Germany using Michelin casings and a patented curing process to produce a remold with performance on par with a new premium-brand OTR tire, notes OTRUSA.com. The tires are backed with a lifetime warranty against premature failure due to defects in material and workmanship. The savings in material input and energy costs of Grunload represent both an environmentally conscious and

48

economical choice for mining and construction companies using large loader tires.

OTRUSA.COM Quik-Link: (800) 687-1557, ext. 21162 www.mtdquiklink.com/21162

Firestone DuraLoad PT L58 quarry and mining tire Bridgestone Commercial Solutions, a business unit of Bridgestone Americas Tire Operations, has launched the Firestone DuraLoad PT L5S bias tire, its newest addition to the DuraLoad tire line. Designed for severe loader service, the new tire features the same casing construction as the DuraLoad DT and DuraLoad SDT. The company says advanced sidewall rib protector technology minimizes sidewall damage and improves cut resistance.

The sidewall technology plus a larger footprint design provide longer wear to make the Firestone DuraLoad PT L5S tire ideal for use in the harshest of mining and quarry environments.

BRIDGESTONE COMMERCIAL SOLUTIONS Quik-Link: (800) 687-1557, ext. 21163 www.mtdquiklink.com/21163

Cooper commercial LT Discoverer tire The Discoverer HT3 from Cooper Tire & Rubber Co. is a light truck tire engineered for premium commercial-grade performance and highway traction in all seasons. The Discoverer HT3 is designed to resist abnormal wear, notes Cooper. The durable HT3 offers the critical features and benefts needed to perform in harsh urban highway conditions.

It is available in R and S ratings and in 17 sizes ranging from 15- to 18-inch rim diameters.

COOPER TIRE & RUBBER CO. Quik-Link: (800) 687-1557, ext. 21164 www.mtdquiklink.com/21164

Goodyear expands spliceless UniCircle tread line The Goodyear Tire & Rubber Co. has rolled out two new UniCircle spliceless treads to help feets extend the service life of popular Goodyear wide-base tires. The G392 SSD UniCircle (pictured) and G394 SST UniCircle products offer many of the same performance benefts as their wide-base, new tire counterparts: the G392 SSD DuraSeal + Fuel Max and the G394 SST DuraSeal + Fuel Max, says Goodyear.

The G392 SSD UniCircle has a 24/32-inch tread depth, while the G394 SST UniCircle comes with a 12/32-inch tread depth.

The G392 SSD UniCircle drive tread and the G394 SST UniCircle trailer tread are available to ft the 445/50R22.5 size. Goodyear also offers fat precure G392 SSD drive and G394 SST trailer retreads to ft the 445/50R22.5 and 455/55R22.5 sizes.

GOODYEAR TIRE & RUBBER CO. Quik-Link: (800) 687-1557, ext. 21165 www.mtdquiklink.com/21165

MTD October 2013

Hankook on/off-road Smart Work AM15 TBR tire The Smart Work AM15 on-/off-road widebase/all-position TBR tire from Hankook Tire America Corp. is for construction feet customers and comes in two sizes, 385/65R22.5 and 425/65R22.5. The Smart Work AM15 was designed to offer feet customers strength, traction and long life with features that include a tread pattern design that offers enhanced traction performance and fuel efficiency. A stone ejector rib helps prevent stone drilling. An optimized carcass structure offers a good ride and strong handling, and an improved bead profle provides superior retreadability and a stabilized footprint to reduce irregular wear, notes Hankook.

HANKOOK TIRE AMERICA CORP. Quik-Link: (800) 687-1557, ext. 21166 www.mtdquiklink.com/21166

1/4-inch thick reinforcing strap welded to the tubes. The Magnum cage is 48 inches long, 30 inches wide and 56-1/4 inches tall, and is designed to provide more inside clearance for the new generation of super single and super wide-base truck tires, with their higher infation pressures and air volumes.

KEN-TOOL CORP. Quik-Link: (800) 687-1557, ext. 21168 www.mtdquiklink.com/21168

Trelleborg launches SugarCane tire

Point-to-point loose nut indicator from IMI The Checkpoint point-to-point loose nut indicator from International Marketing Inc. is part of a total wheel torque/maintenance program. It has a shorter indication arrow that allows for Checkpoint unit placement in pairs so that they point toward each other in a point-to-point confguration that offers a preferred option over the “daisy chain” (where the indication arrows point in a clockwise direction) because of easier detection of lug nut movement. The safety check improves overall feet maintenance and safety, and is important to utilize, notes IMI. INTERNATIONAL MARKETING INC. Quik-Link: (800) 687-1557, ext. 21167 www.mtdquiklink.com/21167

Super Magnum cage reduces force by 93% The 36010 5-bar Super Magnum cage from Ken-Tool Corp. reduces the side-force energy resulting from a catastrophic sidewall zipper rupture of a super wide-base tire by 93%.

This is achieved with expanded steel mesh defection barriers welded to the insides of the cage tubing. The cage features fve mandrel-bent, highstrength 12-gauge, 2-1/4-inch diameter structural steel tubes, welded to a 3/16-inch thick steel plate base with a 2-inch wide,

www.moderntiredealer.com

Trelleborg Wheel Systems Americas Inc. has launched its new 710/70R38 TM800 SugarCane specifcally engineered for sugar cane applications. To cope effectively with sugar cane stubble, the profle of the tire lug’s base is signifcantly smoother and more rounded when compared to a conventional tractor tire, notes Trelleborg. The structure of the new 710/70R38 TM800 SugarCane has been designed to handle high torque and load transmitted to the tire during demanding sugar cane farming operations. The bead width has been increased by 12% to withstand the stress of severe farming conditions.

TRELLEBORG WHEEL SYSTEMS AMERICAS INC. Quik-Link: (800) 687-1557, ext. 21169 www.mtdquiklink.com/21169

Yokohama Y20, Y67 tires for mining operations Yokohama Tire Corp. (YTC) offers two new mining tires, the Y20 (pictured) and the Y67. The 36-ply heavy-duty Y20 39x15x20 is ideal for scoops and coal haulers needing heavy weightcarrying capacity in a 39-inch tall tire, says YTC. It also allows for the replacement of a 15-inch rim with a heavy-duty 20-inch rim for better durability and extra room around the hub. This promotes cooler running brakes, and better access and torque on the lug bolts. The Y20 was developed to take large shuttle cars down to lower levels, enabling access to deeper coal seams while still offering great carrying capacity.

The 36-ply tough-tread Y67 44x15x20 is engineered for large shuttle cars, providing greater carrying capacity without having to change rims, and its wide footprint delivers an improved ride and longer tire life.

YOKOHAMA TIRE CORP. Quik-Link: (800) 687-1557, ext. 21170 www.mtdquiklink.com/21170

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European notebook

All-season vs. winter tires A hotly disputed debate in parts of Europe

F

or over a decade now there has been a simis that they have been specifcally developed mering undercurrent of debate in Europe for selected European regions with moderate over the merits and needs of winter tires. climates which are characterized by wet, light to It is a tricky subject as parts of Northern Europe mid-winter conditions to give drivers a sense of and Scandinavia predictably receive harsh winter confdence in safe driving experiences throughout conditions including heavy snowfall, so rugged the year and eliminating the need to change winter tires are essential. In Southern Europe, tires twice every year. Tis is why in 2013 I have however, wintry road conditions are a very rare noticed an increasing amount of tire retailers occurrence. recommending all-season brands for the coming In the past few years the emergence of all- By John Stone winter season — not just in the UK, but also in season tires (sometimes known as all-weather Holland and France. tires) has added even more fuel to the fre of opinion on Living in a reasonably average neighborhood area among the best type of tires in terms of safety needed for cars and a good cross section of people — from young, ambitious trucks in the winter months. Perhaps the perfect example business people right through to young couples starting of a market where both all-season and winter tires are families — I have recently carried out my own very low-key competing against one another is the UK which forms survey on what ordinary drivers feel about the winter tire part of the European road network (at least politically). vs. all-season tire argument in the UK. Although all-season tires are fted to most vehicles in Te overwhelming conclusion is that because the winters America where (in regions of modest winter snowfall) are only occasionally severe, most favoured buying all-season they are considered a reasonable compromise to suit most tires over winter tires. I feel there are two fundamental reasons for this overwhelming decision.

First of all, it’s a mater of cost. It’s true the UK is slowly but surely recovering fnancially as a nation (unlike some European countries), but money is still tight for many households. So having to change tires midway through the year to combat winter is simply unacceptable and can be out of reach for many drivers. Te other reason is that most people still work on the age-old theory of “If the weather is that bad we will not drive,” therefore eliminating the need for winter tires.

When you look at the proven benefts of all-season tires, including the fact that these tires are manufactured with specifc rubber formulations and compounds to provide reassuring impressive traction on a wide range of tough wintry road conditions, it’s easy to understand why drivers do not see the need for more tough and resilient winter paterns fted to their cars.

To be honest, I am a great believer in economic practiCan all-weather tires cope with European winters? Their patterns are not ideal when road conditions turn deadly. cality when it comes to driving and can understand why there is still eager support for the UK and milder climates road conditions, the same universal agreement has not yet in Northern Europe to adopt all-weather tires over winter reached various parts of Europe. In the UK right now both tires. However, there is no doubt that these paterns are not types of tires have avid supporters. ideal when road conditions really deteriorate dramatically Te UK is perhaps unique in the sense that like Holland and lead to a series of spectacular accidents with loss of life. and France, heavy snow conditions only happen once every Te hotly disputed debate continues. ■ few years. And although when the roads are particularly bad with ice and snow it would make sense to drive on profesJohn Stone has been working within the global tire industry sional winter tires, such severe weather is considered to be for the past 20 years. In 2004 he launched his own company, reasonably rare. To be honest, I have yet to see winter tires Sapphire Media Services, as a business media consultant being extensively promoted in UK tire retail outlets, but the with clients around the globe. Stone also writes for tire and exact opposite can be said of all-season tires. automotive-related publications in Europe, South Afica Te general description of all-season brands in Europe and Asia.

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MTD October 2013

Quik-Link: 800-687-1557 ext. 21127

Counter intelligence

Is the value of value losing its value?

Sales success lies with discovering where your customers place product value

I

s the value of value losing its value? Of course, imported tires are created equal; some deserve the value of value varies from customer to to be sold for more because they are actually customer. Everyone is diferent, and most worth more. everyone values things diferently.

I’d like to ofer a simple suggestion from my One thing that really struck me as a younger past retail experience: You have to sell up; you man working in retail stores was this comment, have to sell out of the entry level position; you “It’s just for my wife’s car.” Ofen I would receive have to ofer a beter value, a real value that works a phone call or a walk-in, and I was asked by a for both you and the customer. You have litle husband for a price quote on a set of tires. In the control regarding overseas factories and their qualifying process, the husband would ofen say, By Wayne Williams methods to market, and you probably don’t have “It’s just for my wife’s car.” Tat says a lot: Maybe much control at your local distributor level, either. he doesn’t think much of her car; or maybe he doesn’t think Terefore, you must focus where you have some level of she drives very many miles, you know, just around town; control, your own retail operation(s), your own store(s). or maybe he doesn’t value safety; or maybe he just doesn’t You must rethink your marketing. You are going to have value his wife. In this scenario, there are a wide variety of to place some increased value in a lower-priced tire that areas that are subject to interpretation. returns you a beter margin. It starts with something like For starters, where the customer places value is where we this, “Mr. Customer, would you be interested in a beter, should place the value. So ofen in our business, customers low-priced tire?” don’t understand the value of a tire and how it impacts If you are going to collect more margin from a lower-end the overall performance of a vehicle. Tis is where we add value. When confronted with the “It’s just my wife’s car” comment, I knew immediately we were moving toward the botom of the price range.

Te company I worked for expected the sales staf to sell up. We had a good training, marketing and merchandising program, and we were expected to execute the sell-up program.

Starting at the botom, at the lowest price levels, is the hardest way to generate acceptable gross proft at the end of the day and at the end of the month. Te independent tire dealer in North America is currently in a knife fght; there is a race to the botom like never before, and there is no shortage of low-priced, low-margin tires.

I say “a knife fght” because it’s bloody and painful; it’s like hand-to-hand combat every day. Tere is seemingly no botom to the pricing, and a new line of lower-priced tires hits the market every week.

To make acceptable gross proft you must buy right and sell right. Te overall problem is there is litle or no value tire, it is necessary, no, it’s mandatory, that you give the cusplaced on a majority of low-priced imported tires. Many tomer a beter tire for their money; it’s good old-fashioned overseas factories seemingly just pump out tires and food value. Many imported tires coming into North America the North American market. Te importer/distributors then today are what I call “GEN 3.” Tese tires look beter, and redistribute these low-value products into the retailer network, from all appearances, they are beter. Te question then which reluctantly buys and sells these low-value products at becomes, is it possible to program or position an imported a low margin, complaining all the while about cheap tires. tire in your overall tire line-up where you make a reasonSooner or later we’ll all have to fnd a way to collect an able margin? I hear retailers and distributors constantly acceptable margin on these products. Tis is only going complaining about margin, complaining about things for to happen if we place more value on these products. We which they have no control. I’m suggesting that we may must reassess the actual value and proft potential of each have to add value soon to products that we have heretofore line we select to sell to our customers. Not all low-priced, viewed as less valuable.

Some real thought must go into your product matrix to reestablish an improved line-up that returns a sustainable margin to your operation.

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MTD October 2013

Quik-Link: 800-687-1557 ext. 21128

Quik-Link: 800-687-1557 ext. 21129

Counter intelligence Adding value is critical; adding value is ofen a mater of understanding what customers want. Tough it difers from customer to customer, we all know that customers understand basic numbers. Tey believe or understand that a 55,000-mile warrantied tire will (should) last longer than a 45,000-mile tire. If a customer can get 10,000 more miles for, say, $10 more per tire, that might represent more value to many customers.

Of course, if you make this ofer, you must back it up with a convincing factual presentation, a mileage certifcate, a notation on the customer’s invoice, something that validates the

actual value. You may decide to ofer a free replacement for the frst 25% of tread life for workmanship or material defects.

It’s been my experience that on the West Coast, many dealers consider all inexpensive, imported brands a necessary evil. Well, things, they are a-changing, and we must all change with the times. A serious reassessment is required; some real thought must go into your product matrix to re-establish an improved line-up that returns a sustainable margin to your operation.

In so many retail environments, customers are lured into stores by fake promotions. I was loitering in a large, regional tire retailer last week where they are currently running a Buy 2 / Get 2 Free campaign. I watched as a retail counter salesman earnestly struggled to explain why that customer was not eligible to take advantage of the ofer.

Te consumer was seriously upset and vocal, though the salesman did a decent job of explaining the actual promotion.

Was that the intent, to spend money to bring a customer in, only to upset them

on their showroom foor? I couldn’t help but think how that consumer will feel about the store every time he drives by for the rest of his life. My point is, real value is real, and fake value is not value at all.

Back to my opening comment, “Is the value of value losing its value?” Tis is debatable, but one thing I’m sure of — customers place high value on geting more for their money; they always have, and, I suppose they always will.

In conclusion, you must create value for yourself and your customers, real value, lasting value, and that value may be found in an imported tire that perhaps you have undervalued until now.

See you at the SEMA Show. ■

Wayne Williams is president of ExSell Marketing Inc., a “counter intelligence” frm based in La Habra, Calif. He can be reached at exsellmkting@gmail.com.

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Quik-Link: 800-687-1557 ext. 21130

MTD October 2013

Quik-Link: 800-687-1557 ext. 21131

Focus on industry

“The Mercedes-Benz SClass is recognized as one of the fnest luxury cars in the world,” said Seung Hwa Suh, vice chairman and CEO of Hankook Tire Co.

Hankook pushes for OE Deals are secured with premier automakers including Mercedes-Benz, BMW, Toyota and Nissan

By Greg Smith

H

ankook Tire Co. Ltd. has been very aggressive in securing original equipment ftments in recent years, and held a major press conference Sept. 2, 2013, in Seoul, South Korea, to announce its latest ftments.

Earlier this year, Hankook’s President and Chief Marketing Ofcer Hyum Bum Cho told North American dealers his company views OE ftments as crucial to the company’s

growth and brand building. He said OE ftments are a beter investment than running a $250 million consumer advertising campaign for brand development (see March 2013 MTD, page 64). Now, the company has released more information about its OE ftments.

Te company said it has been chosen by Daimler AG as an OE supplier for the new 2014 Mercedes-Benz S-Class.

Te new luxury sedan will initially be fted with Hankook Ventus Prime2 tires in size 245/55R17 102 W. Te tires

Hankook invests $240 million in new test facility Hankook Tire Co. Ltd. is investing $240 million through 2020 to build a new proving ground and tire R&D facility in Sangju City, South Korea.

The company says the facility will have the largest proving ground in Korea, incorporating state-of-the-art test equipment. It will enable tire tests with ultra-high performance tire products, simulating extreme driving conditions. Tests on truck and bus tires also can be conducted at the new complex.

Upon its completion, the Hankook Tire Test Engineering Center will become the company’s key R&D facility that allows its engineers to design, produce, test and analyze tires as a one-package process in one location.

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Quik-Link: 800-687-1557 ext. 21132

Focus on industry are not run-fat tires, and the company did not know if any of these cars would be available for sale in the United States market.

“Te Mercedes-Benz S-Class is recognized as one of the fnest luxury cars in the world,” said Seung Hwa Suh, Hankook’s vice chairman and CEO. “We are delighted

OE ftments are crucial to success, said Hyum Bum Cho, Hankook’s president and chief marketing offcer. They have been growing continually.

that the Hankook Tire Ventus Prime2 we have developed for Daimler AG meets all aspects of our customer’s exacting requirements for their new MercedesBenz S-Class.”

Te tires for the Mercedes-Benz S-Class

are currently being produced at Hankook’s main factory for ultra-high performance tires in Geumsan, South Korea. Te ftment began in June, according to Hankook.

In addition to the Mercedes-Benz SClass announcement, the company said its UHP Ventus S1 evo2 in size 225/50R17W has also been selected for the company’s E-Class. Te supply agreement begins this month.

Hankook also announced that it has been chosen as a supplier to BMW’s new 5-series with the Ventus S1 evo2 in size 225/55R17W. Tis will be the fourth BMW model that Hankook supplies with tires. Te tires will be on the 520i, 528i, 530i, 535i and 520d. As with the Mercedes ftments, the company did not know if any of these cars would be available for sale in the U.S. Te tires are not run-fats.

Suh said the company “wants to provide high-quality tires but also enhance our reputation with consumers” with the addition of the upscale German car maker ftments.

Cho put it this way: “We have achieved our own grand slam by now supplying all three German automakers (Audi, BMW and Mercedes).”

Cho said the recent announcements now place Hankook among the top tier tire companies in the world.

The company also said its Optimo H426 was selected by Toyota for its 2014 Corolla in size 195/65R15S; the same tire was selected for the Nissan 2014 Altima in size P215/60R16T. Both of these cars are being sold in North America.

Hankook debuts airless concept tire Airless concept tires continue to attract attention by tire manufacturers. This time, it’s Hankook Tire Co. Ltd. that showcased its iFlex non-pneumatic eco-friendly tire at the Frankfurt Auto Show in Germany in early September.

The iFlex uses organically connected spokes that distribute pressure so that the bottom of the tire is compressed while the top stretches. The company says this leads to a comfortable and smooth ride.

The up to 95% recyclable tire, made from highly elasticated polyurethane synthetics, is manufactured in conjunction with its rim. The company says the tire consumes Customers have the less energy while rolling and it does not require air. This option of customizing in turn results in lowering fuel consumption while simul- the look of their tires as colors can be aptaneously increasing vehicle safety. plied to the iFlex’s cenThere also is a wide selection of colors that can be ap- ter frame, outer layer plied to the center frame, outer layer and inner structure. and inner structure.

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MTD October 2013

Quik-Link: 800-687-1557 ext. 21133

Focus on industry Hankook has been active in the OE business during 2013. Earlier this year, the company landed a contract for the Honda Civic with its Optimo H426 tire in size P205/55R16H. Hankook started its OE push in 1999.

Despite the relatively short history compared to other competitors, OE sales have been continuously growing throughout the years, said Hankook.

Hankook has now established business partnerships with all of the global top-eight automakers.

Since 2009, Hankook has gradually built partnerships with various global automakers, including premium automakers BMW, Audi, Lincoln, Daimler Trucks North America (DTNA) and Chrysler.

In recent years, the company has expanded its OE fitment portfolio into German premium car makers MercedesBenz and BMW and Japanese automakers Toyota, Nissan and Honda.

Hankook has seen a sharp increase in OE sales since 2009, with OE sales reaching 37% of total (unit) sales in 2012. Tese OE shipments totaled $1.8 billion, which amounted to about 28% of the company’s total annual revenue.

Also, compared to the year before,

OE supply contracts to global premium automakers jumped by 27.6%, led by factory-installation of ultra-high performance tires.

Hankook believes its OE business highlights its technology and quality.

Te company said, “Premium OE supply expansion is a part of our core mid- to long-term strategic objectives.

Having said that, we will continue our endeavor to further raise Hankook Tire’s brand equity as a top-tier company through extending our premium OE portfolio, and we will continually boost market share worldwide by raising product quality.”

About 58% of the OE tires manufactured from the company’s Geumsan plant are supplied to domestic automakers in Korea, while the rest (approximately 42%) are headed to overseas markets such as North America, Europe, Mexico and Japan.

In 2012, Hankook produced about 30% of total global OE tires at the Geumsan plant, which is equivalent to roughly 11% of total tires produced by Hankook’s global production network.

In addition, the OE tires manufactured at the Geumsan plant make up about 42% of its aggregate annual production capacity. ■

Company holds grand opening for 7th tire plant Hankook Tire Co. Ltd. celebrated the grand opening of its seventh global tire plant in Indonesia last month.

The plant is located in Lippo Cikarang, Bekasi, West Java, and will act as an export base for the North America and Middle East markets as well as a regional business hub for the emerging Asian market, reaching the production capacity of 6 million tires per year.

Approximately 30% will be allocated to cater to the Indonesian domestic market, while the remaining 70% will be exported to serve the demands in emerging markets across the globe including the

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Quik-Link: 800-687-1557 ext. 21134

ASEAN region, North America and the Middle East.

Covering an area of 148 acres, Hankook Tire’s Indonesia plant is a modern manufacturing facility equipped to produce mainly passenger car tires, ultra-high performance tires and light truck tires.

At the grand opening, Seung Hwa Suh, vice chairman and CEO of Hankook Tire, said, “Today’s commemoration of the Indonesia plant opening marks yet another milestone in Hankook Tire’s ongoing growth as a global top-tier tire company. This is also a clear manifestation of our strong will and

commitment for further growth together with Indonesia and other emerging economies. As a leading global tire company, we will continue our relentless efforts to supply customers around the world with more advanced, globally acclaimed tires via our new export base in Indonesia.”

With a groundbreaking ceremony held in June 2011, Hankook Tire commenced the construction of its seventh global manufacturing plant in Indonesia. The company currently employs approximately 1,400 staff members and will increase to a total of 4,300 employees by 2018.

MTD October 2013

Quik-Link: 800-687-1557 ext. 21135

Focus on industry

Hankook sets sights on ‘top tier’ Company plans to grow brands, plants and distribution

By Greg Smith

W

hile in Korea for Hankook Tire’s announcement of new OE ftments, MTD had the opportunity to spend time with Seung Hwa Suh, vice chairman and CEO of Hankook Tire Co. Ltd. In an open and frank discussion, Suh shared his views about a number of key issues for Hankook as the company moves forward. He addressed a variety of issues: • How close Hankook is to being a “top tier” tire company; • Te need to improve the image of the Hankook brand so the company can launch a second brand to help it grow; • Pending announcement of a U.S. tire plant; • The plans to grow company-owned distribution worldwide through T’Station and Masters programs; • Te social responsibility of the company; • Te need to outpace world-wide tire growth; • Mergers and acquisitions by the company; and • Hankook’s change of status at OE. On becoming a “top-tier” tire company: “We have yet to join the top tier, but by 2020 we will be there. We will not stop working until we achieve this goal,” Suh said. He believes that the new OE ftments on worldclass vehicles will help the company move in this direction.

“By supplying foreign car makers, we became a serious supplier. In terms of quality, we are a top-tier company right now. We still recognize that our company size and brand must be improved.”

Troughout the time MTD spent in Korea, talk of being a top-tier tire company was mentioned in many conversations.

On launching “associate” brands: “We are thinking of associate brands as we are too heavily involved with the Hankook brand right now. But, in thinking of introducing a lower position brand, we must make the Hankook brand higher in the minds of everyone,” Suh said.

On a U.S. tire plant: As reported earlier this year in MTD, Suh confrmed that the company will make an announcement about a plant in Tennessee, Georgia or South Carolina by year’s end. Negotiations with those three states are ongoing. Capacity could range between fve to 10 million units upon completion.

On company-owned stores and franchise growth: During the OE press conference held earlier, Hankook’s President and Chief Marketing Ofcer Hyum Bum Cho said the company currently has 4,400 stores across the globe with the desire to have 7,700 stores by 2017. Suh said that the company is working on a program for franchise stores in the U.S. through its Masters program (but the company states that is not in the near-term).

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Seung Hwa Suh, vice chairman and CEO of Hankook Tire Co. Ltd., said the company will make an announcement of a U.S. tire plant by year’s end.

Hankook has company-owned and franchised retail stores in Korea by the name of T’Station. In the rest of the world, the franchise stores go by the Masters name. Hankook says it has no plans to have company-owned stores outside of Korea.

On social responsibility by the company: “We must create jobs and maintain jobs and we must make a proft to pay taxes so the government can use those taxes to help people. Te more proft we make, the more jobs we have and the more we can help people.”

On the need for outpacing worldwide tire growth: Last year, Suh says the worldwide consumption of tires stood at 4.5 billion units. He feels the average growth rate stands at 4.5%, or 60 million more units per year. To achieve the growth Hankook wants to have, Suh says they must grow its capacity by six million units per year.

On mergers and acquisitions by the company: Suh says that Hankook has a very conservative culture.

But, he doesn’t rule out acquisitions. “If we did something, it would be related to the car industry.... Hankook worldwide is always looking for opportunities.” Suh did make clear that nothing was under review at the current time by Hankook.

On Hankook’s change of status at OE: Suh shared a lighter moment in looking back to the frst OE ftment call that was made in the U.S. Te company was trying to meet with Ford for a temporary spare in 1997. Suh laughed and shook his head at the difculties in arranging the frst meeting. “It was very difcult. Now, we are being approached to supply the leading car companies in the world.” And Suh smiled at the change. ■

MTD October 2013

Quik-Link: 800-687-1557 ext. 21136

Focus on dealers

Three generations of Schmuckers: Sheldon, co-founder; Brandon, vice president; and Brad, president. Brad’s daughter, Brittany, is treasurer.

It’s Millersburg time Te tire dealership celebrates its 60th anniversary with its retail, commercial and wholesale customers

By Bob Ulrich

O

n Feb. 18, 1953, Sheldon Schmucker and his brother-in-law, Art Miller, wrote a check to the Standard Oil Co. for $215.08 for 1,000 gallons of gas. With that frst payment, Millersburg Tire Service Inc. was of and running.

Two years later, the Millersburg, Ohio, dealership took on Firestone tires. Although a lot has changed since then — 21.5 cents a gallon for gas?! — the company’s foundation for success remains the same. Te Schmucker family still owns the business, and continues to align itself with the Firestone brand.

Sheldon, 85, and Miller, 90, were on hand when Millersburg Tire recently held a three-day anniversary party presided over by Sheldon’s son, Brad. Millersburg Tire treated its retail, commercial and wholesale customers to prize giveaways, including Bridgestone and Firestone tires and free oil changes for a year. Tere also was plenty of homemade ice cream, donuts and popcorn to go around.

On Tursday, a local radio station broadcast live from

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the store. On Friday, a barbecue chicken dinner was followed by a concert of bluegrass music. On Saturday, Dan Patrick’s Samson Monster Truck crushed cars. Donations were accepted benefting the Love Center Free Clinic and Haiti Relief Sale.

Brad, the company’s president, says the key to the family’s success is treating farmers and other customers the way each member of his family wants to be treated. “For example, we don’t raise our wholesale prices the day our suppliers raise tire prices. We try to give our dealers fair notice that our prices are going to go up.

“Here’s another example. We don’t raise snow tire prices when we see a blizzard coming.”

Brad, his wife, Diane, son, Brandon, and daughter, Britany, run the company. Brad also has a brother, sister, brother-in-law and nephew in the business.

Originally a General tire dealership, Millersburg Tire still carries the brand, along with BFGoodrich, BKT, Carlisle, Continental, Cooper, Dunlop, Fuzion, Goodyear, Kelly, Mastercraf, Michelin, Samson and STA. Te company inventories $2 million worth of tires on its fve-acre lot. ■

MTD October 2013

Focus on industry

Las Vegas to host industry trade shows Go to the SEMA Show and AAPEX and discover the newest products that help make up a $477 billion market

By Lori L. Mavrigian

T

his year marks the 50th birthday of the Specialty Equipment Market Association (SEMA), and it is celebrating with a bigger, beter SEMA Show in the Las Vegas Convention Center Nov. 5-8 Going on the same time as the SEMA Show on Nov. 5-7 is the expanded Automotive Afermarket Products Expo (AAPEX) in the Sands Expo Center in Las Vegas.

Tese are both part of the Automotive Aftermarket Industry Week (AAIW), which brings together more than 130,000 automotive industry professionals to Las Vegas who are involved in the $477 billion global motor vehicle afermarket.

Te SEMA Show

Tis year’s SEMA Show is the associations 47th, and it is 12% larger than last year.

Te show foor will ofer more than 2,000 new products from over 2,400 exhibiting companies including close to 450 frst-time exhibitors.

Te 2013 SEMA Show also includes more than 90 educational seminars focused on helping auto-related business professionals sell more products and be more productive.

Topics range from marketing, to cash fow and industry trends, social media, email marketing and customer service.

Most sessions are available free of charge to those with SEMA Show credentials.

Sessions begin the day before the ofcial opening of the show and continue at various times throughout the event.

“We recognize that participants have made an investment to leave their businesses and atend the SEMA Show,” says Peter MacGillivray, SEMA vice president of events and communications.

“Te main atraction is on the show foor where exhibitors and products are.

www.moderntiredealer.com

However, the educational seminars connect the dots and teach businesses how to better promote their products and compete in today’s marketplace.”

Te seminars are taught by industry leaders and business experts from all over the world. Some of the SEMA Show sessions include: • Build a winning marketing strategy • Industry trends and forecasts: Enthusiast purchase journey • Shoestring marketing • Vehicle dynamics forum • Successful teams: Turning passion into a successful business • Stand out! Diferentiate or disappear • Creating and executing a smart business plan • Who’s in the driver’s seat? A comprehensive look at generational trends in the automotive industry • Online marketing: Twiter • Creating the best possible sales team Te SEMA Show will ofer 12 sections covering a wide spectrum of automotive specialty equipment.

Te North Hall will house:

• • • •

Collision repair and refnish Mobile electronics and technology Restyling and car care accessories Tools and equipment

In the Central Hall you will fnd: • Racing and performance • Restoration marketplace • Hot rod alley South Hall Upper will house: • Trucks, SUVs and of-road • Powersports and utility vehicles • Business services • Featured exhibitors Quik-Link: 800-687-1557 ext. 21137

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Focus on industry

Big O Tires exhibited at the Global Tire Expo — Powered by TIA (the Tire Industry Association) at last year’s SEMA Show.

And the South Hall Lower will have: • Te Tire Industry Association’s Global Tire Expo • Wheels and accessories In addition to 11 designated foor sections, the SEMA Show includes three diferent areas where frst-time and featured exhibitors can be found.

In order for SEMA to accommodate all the exhibitors, “We’ve expanded our footprint,” says MacGillivray. “Collectively, the frst-time and featured exhibitor areas include hundreds of new and innovative manufacturers that represent all markets in the industry. Tese are must-see areas for everyone in the industry.”

Te three areas are found in the:

* Upper South Hall, east end near the New Products Showcase: Tis is the same area where First-Time and Featured Exhibitors were located in 2012. * Bridge, between Central and South Halls * LVH South Pavilion area, near Central Hall: Te LVH is located across the street, but adjacent to the north side of North Hall. Several exhibitors will be located in the Pavilion area of the LVH, along with general registration.

Tere also will be more than 1,500 vehicles on display including cars, trucks, motorcycles, ATVs and UTVs showcasing the latest tires, wheels and automotive products.

And to showcase the industry’s top trend-seting vehicle models, the SEMA Awards will be announced and presented to winning automakers during the show.

Trough the program, SEMA exhibitors that make the products and accessories for today’s popular models, will identify the vehicle platforms they believe are best for accessorizing, and ideal for showcasing the coolest new products.

“Te SEMA Show has always been about highlighting the industry’s most innovative new products and the trends that emerge each year,” says Chris Kersting, SEMA president and

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CEO. “Te SEMA Award celebrates the new vehicle models that SEMA exhibitors expect will be the major trend-seters in the months ahead.”

Show organizers will take a tally of every booth vehicle at the show to identify the most popular vehicle models in four categories (Hotest Car, Hotest Truck, Hotest 4x4-SUV, and Hotest Sport Compact). With each booth vehicle representing one vote, the most prominent models will be named the SEMA Award winners for the year.

“SEMA Show exhibitors have traditionally served as the true visionaries of the industry,” said Kersting. “Tey’re making a strong statement about what they see as the year’s hotest new cars and trucks through the vehicles they select and modify for display in their booths.”

“Te SEMA Award is always a strong indicator of which vehicles are likely going be most popular with consumers in the coming year,” says Kersting. “Vehicles chosen for display at the SEMA Show are by defnition the hotest-trending and most accessory-friendly models among enthusiasts, and these models ofen become high-demand vehicles for the car-buying public.”

Last year’s SEMA Award winners were the Ford Mustang in the car category, the Scion FR-S in the sport compact category, the Ford F-Series in the truck category and the Jeep Wrangler in the 4x4-SUV category.

Cars & Cofee

Among the new atractions at the 2013 SEMA Show will be Cars & Cofee — SEMA Edition. Taking place in the outdoor patio on the south side of the LVH (adjacent to the LVCC North Hall) from 8 a.m. to 9 a.m. each morning of the show, Cars & Cofee gives atendees a place to start their day.

Atendees will be able to grab a cup of cofee and a donut, check out show cars, mingle with colleagues then get a jump start on their day by visiting the newly expanded Featured Exhibitors section at the LVH. Featuring some of the industry’s newest exhibitors, the LVH exhibits open at 8 a.m. — before

MTD October 2013

AAPEX will offer show goers domestically and internationally sourced new and remanufactured parts, learning sessions and more.

the Las Vegas Convention Center show foor opens.

“There are lots of new features and atractions taking place at the LVH,” said MacGillivray.

“Cars & Cofee gives atendees a fun, informal event where they can see what’s new at the LVH.”

SEMA awards banquet

“The Industry Awards Banquet is a time for the industry to celebrate,” says MacGillivray. Awards will be presented for SEMA Person of the Year, Rep Agency of the Year and W/D of the Year. Entertainment will be provided by comedians John Hefron and Jon Reep, as well as by former American Idol winner Taylor Hicks.

For more information, see SEMA’s website at www.semashow.com

At the AAPEX

AAPEX is jointly sponsored by the Automotive Afermarket Industry Association (AAIA) and the Automotive Afermarket Suppliers Association (AASA). It is the place where warehouse/distributors, retailers program groups, jobbers, service providers and others go to source products from both domestic and international suppliers.

AAPEX also is ofering a learning forum covering close to 40 topics. All sessions are accredited by the University of the

www.moderntiredealer.com

Afermarket toward the Automotive Aftermarket Professional (AAP) and Master Automotive Afermarket Professional (MAAP) professional designations. Sessions will be held at the Venetian Hotel and include:

• Brand supremacy: Building strength in the automotive afermarket • Marketing and selling to millennial consumers • Import parts explosion: Are You Taking Your Share?

•SWAT team selling: Leading your team to a competitive advantage • Implementing account planning to increase your team’s selling success • Sales and marketing trends: Te latest technology that will increase your cash fow • Te three quickest ways to grow your botom line with mobile marketing • Handling the phone shopper: Turning phone shoppers into customers Te AAPEX show foor is broken down into sections, including: • Automotive Warehouse and Distributors Association (AWDA) and NARSA (the International Heat Transfer Association) sections • Paint and body • Remanufacturing Quik-Link: 800-687-1557 ext.21138

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Focus on industry • Tools and equipment • Auto international • International pavilions

t tech trends: 10 things happening today tthat will afect your business tomorrow.

• Dan Schawbel, Millennial Branding — Building the workforce of tomorrow: How to recruit, retain and grow your H yyoung talent.

Geared for W/Ds

Well-known professional experts on distribution and management will be presenting topics of interest to warehouse/distributors in learning forum sessions.

Te sessions include how to achieve profitability and success, future forces in B2B markets, sales and marketing optimization, building tomorrow’s workforce and trends afecting today’s distribution businesses.

Featured speakers include: • Garrison Wynn, Wynn Solutions — Te real truth about success: What the top 1% do diferently and why they won’t tell you, and Being the best vs. being consistently chosen.

• Steve Diest, Indian River Consulting Group — Channel evolution: Lessons from other industries, and Future forces in B2B markets.

• Barry Lawrence, Texas A & M Distribution Program — Optimizing distributor proftability: Best practices for improving return on investment, and Sales and marketing optimization: Driving growth and market share.

• Gene Marks, Te Marks Group — Economic, political and

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FFeature on the AAPEX show foor

Two engine builders from Hendrick M Motorsports will assemble and run a NASCAR R07 Chevrolet engine in less N tthan 30 minutes during this year’s AAPEX sshow.

Engine rebuild demonstrations will be hheld daily at 10 a.m. and 2:30 p.m. and will aallow buyers the opportunity to examine tthe parts, talk to the builders and learn aabout remanufactured engines.

Te engine rebuild area is sponsored by tthe Engine Rebuilders Council (ERC), tthe AER Engine Builders Association, tthe Production Engine Remanufacturers Association (PER) and MAHLE Clevite Inc. It is part of the new Remanufacturing Section at AAPEX, co-hosted by the Motor & Equipment Remanufacturers Association (MER) and ERC. Te event will be on the upper level of the Sands Expo Center.

For more information, see www.aapexshow.com ■

Quik-Link: 800-687-1557 ext. 21139

MTD October 2013

Quik-Link: 800-687-1557 ext. 21140

Focus on dealers

Blueprint for success Tour the inside of Te Tire Choice

By Bob Ulrich

O

n the outside, each of the 35 buildings is anything but nondescript. Te distinct yellow, blue and red “The Tire Choice & Total Car Care” logo tells everyone they are tire stores designed for one-stop service, transmission and engine work included.

Te blueprint for an average Tire Choice store calls for a 6,200-square-foot building, which allows for an inventory of between 1,000 and 1,200 tires. Some of the prototype stores

In nine years, they grew from one Tire Choice outlet to 35. “Our goal now is 60 stores, but I believe we can get up to 100 stores,” says Dan, the company’s chairman and CEO. To get to 100, he admits they will have to expand outside of Florida.

Tey only own two of their locations. “You can’t own the property if you want to grow quickly,” says Diane, the company’s vice chairman and chief fnancial ofcer. “At a fast pace of growth, you have to use capital. Buying the building and the land uses a lot of capital.

“We didn’t borrow money to grow.

We used our own capital.”

Te majority of the leases are 20 years in length, with four fve-year options. Tat means the Hennellys have the buildings tied up for 40 years.

“We have tremendous relationships with our landlords,” says Dan. “We’ve always believed in three things: Always pay your rent, always pay your people and always pay your supplier. We come at the end.”

Prior to starting Te Tire Choice chain in 2004, Dan ran retail tire stores for 20 years, frst as a Goodyear Tire & Rubber Co. manager, then as a Morgan Tire & Auto Inc. executive. Diane also worked at Goodyear, where she worked her way up from customer service representative to export sales manager. Her business experiences include owning a real estate company and earning a business degree from the University of Miami.

Outside in

According to the Hennellys, to properly service an area, the average store should have nine service bays and nine employees. Te employee chain of command, so to speak, is structured as follows: About 40% of The Tire Choice technicians are ASE-certifed, including Master Tech Howard store manager, service manager, sales Bray (right, with Bradenton Store Manager Scott Biery). manager (depending on store volume), cover 7,200 square feet; the fagship store in Oakland Park, technicians and tire busters.

Fla., near the company’s headquarters in Fort Lauderdale, “Tere has to be at least one ASE-certifed mechanic in is 7,300 square feet. every store,” says Diane. “We encourage and help all of them Almost all of the stores and the land on which they are to become ASE-certifed.” situated are leased by Dan and Diane Hennelly, owners of Showrooms feature tire walls, with tire inserts branding Hennelly Tire & Auto Inc. Te Hennellys are Modern Tire the company name, not tire brands. Big posters asking for Dealer’s 2013 Tire Dealer of the Year Award winners (see feedback are hung in every store. Free cofee is a given, our September issue). says Dan.

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Te majority of the stores ofer Wi-Fi. “Tat’s something customers really appreciate,” he says. “We started ofering Wi-Fi maybe eight years ago. At the time, we were leading the way. Now, everybody kind of expects it.

“Most of our stores also have a work site area, with counter tops and leather chairs so our business people can sit there and work.”

Te Oakland Park store was designed with granite counter tops, marble foors and wood paneling (see lower right photo).

Te Hennellys liked the warm look of the paneling so much they have since used it in other stores.

(To read more about the Hennellys’ business philosophies, visit www.moderntiredealer.com, where their success story can be found by clicking on the Tire Dealer of the Year link in the drop-down menu under the Articles channel.) ■

Counterclockwise from above: Bradenton Service Manager Andrew Boan caters to a customer; large windows let in plenty of light at the Oakland Park store; Naples Store Manager Andrew Deaton (left) talks with Region Manager Steve Powell; the average Tire Choice store has nine bays.

www.moderntiredealer.com

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Focus on industry

Pirelli’s premium strategy OE ftments + better fll rates + P Zero Nero GT

By Bob Ulrich

P

irelli Tire LLC is making a big push to increase its market share in the United States. Tat’s the message Chairman and CEO Paulo Ferrari emphasized directly and indirectly at the recent Pirelli P Zero Nero GT launch in Akron, Ohio.

How will Pirelli do that? Directly by catering to vehicle manufacturers and tire dealers. Indirectly by supplying both groups with the tires they need to succeed.

Focusing on “premium” products is the foundation of

LLC and Te Tire Rack. Its growth is based on improving its fll rates and developing new products.

One way Pirelli has addressed fll-rate problems is by ramping up capacity at its new tire plant in Silao, Guanajuato, Mexico. Te facility will produce 1.2 million premium tires this year and 2 million next year. Eventually, the plant will be able to produce 5.5 million tires annually.

Ferrari adds that the company’s fll-rate percentage has “improved dramatically the last two years,” in part because importing tires from Mexico to the U.S. is faster than importing them from Pirelli’s plant in Brazil.

P Zero Nero GT

Wide, continuous ribs and an asymmetric design give the P Zero Nero GT increased pattern stiffness and a stable footprint.

Pirelli’s strategy, according to Ferrari. He defnes premium as more than just high speed ratings. Te designation also includes sizes 17-inch and above.

Pirelli & Cie SpA’s research and development budget is “fully dedicated” to premium products. Te budget represents 7% of global sales.

OEMs and tire dealers

Ferrari says the parent company owns a 25% market share in premium original equipment ftments globally. Brands like Porsche, BMW and Mercedes are a good ft because they, like Pirelli, are premium products. Te company also supplies tires for the Ford F-150.

In the U.S., Pirelli Tire is growing signifcantly with premium dealers like Discount Tire Co. Inc., Dealer Tire

Pirelli will introduce 18 tire “projects” in North America in the next fve years. Tat compares to 16 in the last 10.

Te new P Zero Nero GT is one of the projects. Te summer sport ultra-high performance tire has the same tread patern as the P Zero Nero, but is superior to it in dry handling, dry braking and tread wear. Pirelli’s engineers were able to improve on those characteristics without compromising the original tire’s wet handling and braking, comfort, aquaplaning (in the straightaway) and rolling resistance characteristics.

Steve Carpino, Pirelli’s vice president of research and development in North America, says the P Zero Nero GT has greater tread life than its predecessor thanks to 1) compounding changes, and 2) mold and spec changes that result in “more contact in the shoulders.”

Pirelli will release the P Zero Nero GT in 26 17-, 18- and 19-inch XL sizes that ft a wide array of vehicles from sports coupes to larger, high-powered sedans.

17-inch (6): 225/55ZR17 101W to 215/40ZR17 87W. 18-inch (9): 225/45ZR18 95Y to 255/35ZR18 94Y. 19-inch (12): 225/40ZR19 (93Y) to 275/30ZR19 (96Y).

Tere also is one non-XL size: 255/45ZR18 99Y. Over the course of the year, the line will expand to 60 sizes.

In the replacement market, the P Zero Nero GT will compete against the Continental ExtremeContact DW, Michelin Pilot Sport PS2, Goodyear Eagle F1 Asymmetric, Bridgestone Potenza RE060A and Hankook Ventus V12 evo. ■

Pirelli gets a ‘grip’ on its global image Canon U.S.A. Inc. was wrong: Image isn’t everything. A well-earned reputation also is a marketing necessity.

Pirelli & Cie SpA, already famous for its annual Pirelli Calendar, is attempting to combine both image and reputation by expanding its partnership with professional golfer

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Francesco Molinari to include Pirelli-brand golf club grips. Made by Lamkin Corp., the line will feature color-coded grips (pictured at right). Rafael Navarro, vice president of communications for Pirelli Tire LLC, says the grips hopefully will be available to golfers in the near future.

MTD October 2013

Quik-Link: 800-687-1557 ext. 21141

Focus on industry

Kumho introduces Ecsta PA31 Plus a ‘new’ plant and more R&D

K

umho Tire Co. Ltd. has been busy lately. It introduced a tire in North America; it jump-started construction on its long anticipated manufacturing plant in the United States; and it opened a ffh research and development center.

In addition, its Kumho Tire U.S.A. Inc. subsidiary improved its Kumho FUEL premium dealer program.

Ecsta PA31

Te new high performance, all-season Ecsta PA31 is designed for today’s growing number of mid-level sports sedans and coupes. It is “the perfect value package for both consumers and dealers alike,” according to Kumho Tire U.S.A. Te tire’s high-tech design delivers “a whole new level of handling and comfort” from a Kumho tire. It also features a wide assortment of V-rated ftments, 35 in all.

15-inch (4): from 185/55R15 to 205/50R15.

16-inch (10): from 215/60R16 to 245/50R16.

17-inch (12): from 215/55R17 to 245/45R17.

18-inch (9): from 215/55R18 to 215/35R18.

Kumho backs the tire with a 50,000-mile limited tread wear warranty.

On/of plant is on again

An agreement has been reached that will allow Kumho Tire Georgia Inc. to begin construction of its consumer tire manufacturing plant in Macon, Ga. Ground breaking on the facility began in May 2008.

However, the recession put those plans on hold for fve years.

“Kumho’s commitment to Macon-Bibb never wavered,” says Harry Choi, president of Kumho Tire Georgia.

“Worldwide economic conditions have greatly afected our company as well as the worldwide tire industry. Kumho Tire Georgia is strong and commited to Macon-Bibb and the U.S. tire industry.”

Sam Hart, chairman of the Bibb County Commission, says the community never lost its support for Kumho.

“And we know they never lost sight of their goal to build this plant in Georgia and in Macon-Bibb County.”

Te Macon-Bibb County Industrial Authority, Bibb County Board of Education, Bibb County Tax Assessors, Bibb County Tax Commissioner, Bibb County Commissioners, and the Macon Economic Development Commission (MEDC) all approved an extension to the 2008 agreement.

“Our economic development team was in constant

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communication with Kumho reps throughout this whole process,” says Robbo Hatcher, the MEDC’s chairman.

“Our partners at the state stayed in touch with Kumho Tire Co. ofcials in Korea also. Tis was a great team efort.”

Te company initially will invest $200 million to build the manufacturing plant “The most sure way of becoming on a 150-acre site in a global tire company is to secure world-class technical prowess,” the Sofkee Indus- says Kumho CEO Kim Changtrial Park located Kyu. With the completion of the in Macon. It will new R&D center, he promises the employ more than company will “continue to strive improve its competitive power 300 people. Kumho to with expansion of overseas facsays the new plant tories and increasing OE supplies will allow the com- to overseas automobile makers.” pany to beter serve its automotive partners as well as American consumers.

R&D center No. 5

Kumho Tire Co. opened its new research and development center in the metropolitan Seoul area on Sept. 3, 2013. It took fve years to build the facility.

Te R&D center, which includes a research building and testing facility, was built in the Giheung-gu District in the city of Yongin, South Korea. It covers a land area of nearly 375,370 square feet; the total foor area covers 245,664.7 square feet.

Te facility will serve as the central control tower of a global R&D network, which also includes the following:

• • • •

Kumho Tire American Technical Center in Akron, Ohio, United States; Kumho Tire Europe Technical Centre in Frankfurt, Germany; Kumho Tire China Technical Centre in Tianjin, China; and Kumho Tire Performance Center in Gwangju, Korea.

Kumho adds that approximately 600 researchers from Korea and abroad will use “industry-leading supercomputers, cuting-edge physical testing equipment, chemical and instrumental analysis equipment, performance research equipment and more” at the new R&D center. ■

MTD October 2013

Quik-Link: 800-687-1557 ext. 21142

TPMS

Direct, indirect TPMS on Grand Prix Vehicle year is critical in determining system service SUBJECT VEHICLE: 2004-08 Pontiac Grand Prix.

RELEARN PROCEDURE? Yes. SPECIAL TOOLS NEEDED? Yes, on 2007-08 models, a J-46079 TPMS activation tool is needed.

Te tire pressure monitoring system (TPMS) on Pontiac Grand Prix vehicles manufactured between 2004 and 2008 difer depending on the year range. In this article procedures are listed separately for 2004-06 models and 2007-08 vehicles.

TPMS 2004-06

NOTE: 2004-06: When a wheel is replaced or rotated, tire pressure has been adjusted or vehicle’s batery has been disconnected, the TPMS will need to be recalibrated. See tire pressure monitor system recalibration (2004-06).

NOTE: 2004-06 vehicles are equipped with indirect TPMS and DO NOT have tire pressure sensors mounted on the wheels.

Te TPMS alerts the driver when a large change in the pressure of one tire exists while the vehicle is being driven. It uses the electronic brake control module (EBCM), anti-lock brake system (ABS) wheel speed sensor inputs, class 2 serial data circuit, instrument panel cluster (IPC) message center, and the driver information center (DIC) to perform the system functions. Te EBCM contains the software to calculate relative tire pressure diferences.

Once the TPMS has learned the tire pressure calibration, the EBCM monitors the ABS wheel speed sensor inputs. If Figure 1: View of tire pressure the pressure increases or sensor installation procedure. decreases in a tire, that tire’s circumference and radius will change, causing that wheel speed sensor input to change.

Te EBCM recognizes this change in wheel speed as a tire pressure condition. If the pressure in one tire becomes at least 7 psi to 10 psi (48 to 69 kPa) lower or higher than the others, the EBCM commands the IPC to illuminate a low pressure tire warning indicator and the DIC to display a “CHECK TIRE PRESSURE” warning message (unless the pressure is high or low in more than one tire, if vehicle speed is above 70 mph (113 km/h), or the system is not completely calibrated). Te system does not alert the driver to which tire pressure is high or low.

CAUTION: Any ABS or traction control operation may temporarily suspend TPMS operation.

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NOTE: Te IPC message center “CHECK TIRE PRESSURE” warning message is ranked as lowest priority, and may not be displayed if a higher priority display is requested at the same time. Under the following conditions, the system may not function properly: • More than one tire is low.

• Only one tire is replaced with a new tire during service.

• Te vehicle is moving faster than 70 mph (113 km/h).

• Te system is not yet calibrated.

• Tire tread wear is uneven.

• A compact spare tire is installed.

• Tire chains are being used.

• Te vehicle is being driven on a rough or frozen road.

• If the ABS warning light is on.

TPMS 2007-08

NOTE: 2007-08: Te sensor learn procedure must be performed afer every tire rotation, remote control door lock receiver (RCDLR) replacement, or sensor replacement. See tire pressure sensor learn (2007-08).

NOTE: 2007-08 vehicles are equipped with direct TPMS and the vehicles DO HAVE sensors mounted on the wheels.

Te system uses the IPC, DIC, RCDLR, keyless entry transmiter(s), rear window antenna grid, a radio frequency transmiting pressure sensor in each wheel/tire assembly, and the serial data circuit to perform the system functions.

The sensors continuously compare their last pressure sample to their current pressure sample and will transmit in re-measure mode if a 1.2 psi change in tire pressure has been detected in either a stationary or rolling state.

TPMS recalibration 2004-06

NOTE: On the GXP models, the front and rear tires are diferent sizes, and tire rotation is not recommended. CAUTION: DO NOT recalibrate TPMS until all problems are fxed and tire pressure in all four tires has been adjusted. If recalibration is done when tire pressures are incorrect, the TPMS will not work properly and may not set an alert when a tire pressure is low or high.

1. Turn the ignition to OFF. 2. Ensure all tire pressures are adjusted according to the tire pressure label.

3. Turn the ignition switch to the ON position, with engine of.

4. Press the vehicle information buton until “TIRE INFLATION MONITOR SYSTEM PRESS (down/lef arrow) SWITCH TO RESET” is displayed.

5. If the system is being reset due to a low tire pressure condition, press and hold the down/lef arrow buton until “TIRE INFLATION MONITOR SYSTEM HAS BEEN RESET” is displayed. If the system is being reset due to a tire rotation, press and hold the down/lef arrow buton for fve seconds.

MTD October 2013

Quik-Link: 800-687-1557 ext. 21143

TPMS 6. Release the down/lef arrow buton and “TIRE PRESSURE NORMAL” is displayed.

7. Afer reseting, the TPMS requires up to five miles of flat, smooth road, straight line driving in each of the four speed ranges (about 10-20 minutes in each range) to complete the calibration process: 19 to 40 mph; 40 to 59 mph; 59 to 74.5 mph; and 74.5 to 90 mph.

NOTE: Te learning process does not need to be completed during a single trip.

Tire pressure sensor learn 2007-08

NOTE: Te sensor learn procedure must be performed afer every tire rotation, RCDLR replacement, or sensor replacement. A J-46079 TPMS activation tool is needed.

Once the learn mode has been enabled, each sensor’s unique identifcation codes can be learned into the RCDLR memory, when it sends a serial data message to the BCM to sound a horn chirp. Tis verifes the sensor has transmited its ID and the RCDLR has received and learned it.

Te RCDLR must learn the sensor IDs

in the proper sequence to determine correct sensor location. Te learned IDs are assigned in the following order: lef-front; right-front; right-rear; and lef-rear. Te turn signals will individually illuminate indicating which location is to be learned in the proper sequence.

Each sensor takes a pressure measurement sample once every 30 seconds while in stationary mode. If the pressure increases or decreases by more than 8.3 kPa (1.2 psi) from the last measurement, another measurement will occur immediately to verify the change in pressure.

If a pressure change has indeed occurred, the sensor transmits in learn mode. When the RCDLR receives a learn mode transmission while in TPMS learn mode, it will assign that sensor ID to the location on the vehicle relative to the order in which it was learned.

NOTE: Te learn mode will cancel if the ignition is cycled to OFF or if more than two minutes has elapsed for any sensor that has not been learned. If the learn mode is cancelled before the frst sensor is learned, the original sensor IDs will be maintained. If the learn mode is canceled afer the frst sensor is learned, the following will occur:

• All stored sensor IDs will be invalidated in the RCDLR memory.

• If equipped, the DIC will display dashes instead of tire pressures.

• DTC C0775 will be set.

Tese conditions will now require the learn procedure to be repeated for the system to function properly.

IMPORTANT: Before proceeding, ensure that no other learn procedure is being performed simultaneously or that tire pressures are not being adjusted on another TPMS-equipped vehicle within close proximity. Stray signals from other TPMS-equipped vehicles just driving by can be inadvertently learned. If any random horn chirps are heard from the vehicle while performing the learn procedure, most likely a stray sensor has been learned and the procedure will need to be cancelled and repeated.

Under these circumstances, performing the TPMS learn procedure away from other vehicles is highly recommended.

In the event particular sensor pressure increase/decrease activation does not cause the horn to chirp, it may be neces-

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Quik-Link: 800-687-1557 ext. 21144

sary to rotate the wheel valve stem to a diferent position due to the sensor signal being blocked by another component.

1. Place the ignition switch in the proper position as follows:

• With a standard ignition switch, place the switch in the RUN position.

• With an electronic keyless ignition, place the switch in the ACCY position.

2. Use one of the following methods to enable learn mode: • Using a scan tool, initiate the TPMS learn mode. A double horn chirp will sound indicating the learn mode has been enabled. Te lef-front turn signal will also be illuminated.

• On vehicles equipped with keyless entry, simultaneously press the keyless entry transmiter’s lock and unlock buttons until a double horn chirp sounds, indicating the learn mode has been enabled. Te lef-front turn signal will also be illuminated • On vehicles not equipped with keyless entry, press and release the DIC INFO buton until the RELEARN TIRE POSITIONS message appears on the DIC display. Press the SET/ RESET buton until a double horn chirp sounds and the DIC displays TIRE LEARNING ACTIVE, indicating the learn mode has been enabled.

3. Use one of the following methods to activate each sensor:

• Hold the antenna of the J-46079 aimed upward against the tire sidewall close to the wheel rim at the valve stem location. Press and release the ACTIVATE buton and wait for a horn chirp; the turn signal in the next location to be learned will illuminate.

• Increase/decrease the tire pressure for eight to 10 seconds then wait for a horn chirp. Te horn chirp may occur before or up to 30 seconds afer the eight- to 10-second pressure increase/ decrease time period has been reached.

Te turn signal in the next location to be learned will then illuminate.

4. Afer the horn chirp has sounded and the right-front turn signal is illuminated, repeat step 3 for the remaining three

MTD October 2013

Quik-Link: 800-687-1557 ext. 21145

TPMS sensors in the following order: right-front; right-rear; lef rear.

5. Afer the lef-rear sensor has been learned, a double horn chirp will sound indicating all sensors have been learned.

6. Turn of the ignition to exit the learn mode.

7. Afer the learn mode has been exited, adjust all tires to the recommended pressures. Refer to the vehicle’s certifcation, tire placard, anti-thef and service parts ID label.

Demounting/mounting procedures

NOTE: If the vehicle’s tires are replaced with those not having a TPC Spec number, the TPMS may give an inaccurate low pressure warning. Non-TPC Spec tires may give a low pressure warning that is higher or lower than the proper warning level achieved by TPC Spec-numbered tires.

NOTE: 2007-08: Te sensor learn procedure must be performed afer every tire rotation, RCDLR replacement, or sensor replacement. See tire pressure sensor learn 2007-08.

• When separating the tire bead from the wheel, position the bead-breaking fxture 90 degrees from the valve stem.

• Position the mounting/demounting head so the tire iron or pry bar can be inserted slightly clockwise of the sensor body when prying the tire bead up and over the mounting/ demounting head.

• Rotate the tire/wheel assembly clockwise when transferring the tire bead to the outside of the wheel rim.

• Repeat items for the inner bead.

IMPORTANT: If any tire sealant is noted upon tire demounting; remove all residual liquid sealant from the inside of the tire and wheel surfaces.

3. Remove the tire from the wheel.

4. Remove the tire pressure sensor nut.

5. Remove the tire pressure sensor.

Installation procedure Tire pressure indicator sensor replacement 2007-08

1. Raise the vehicle on a suitable support.

2. Remove the tire/wheel assembly from the vehicle.

IMPORTANT: Before the tire is removed from the wheel, note the following items to avoid tire pressure sensor damage.

• Place the sensor’s cap and valve on a dry, clean surface afer removal. Te cap is aluminum and the valve is nickel-plated to prevent corrosion and are not to be substituted with a cap or valve made of any other material.

1. Clean any dirt or debris from the grommet sealing area.

2. Insert the sensor in the wheel hole with the air passage facing away from the wheel. See Figure 1.

IMPORTANT: Before reinstalling the tire on the wheel, note the following items to avoid tire pressure sensor damage upon tire mounting.

• Position the mounting/demounting head 180 degrees from the valve stem.

• Position the bead transition area 45 degrees counter clockwise of the valve stem.

• Rotate the tire/wheel assembly clockwise when transferring the tire bead to the inside of the wheel rim.

• Repeat items for the outer bead.

3. Install the sensor nut and position the sensor body parallel to the inside wheel surface while torquing. See Figure 2.

Tighten the sensor nut to 7 Nm (62 in.-lbs).

IMPORTANT: A service replacement tire pressure sensor is shipped in the OFF mode. In this mode the sensor’s unique identifcation code cannot be learned into the RCDLR memory.

Te sensor must be taken out of OFF mode by spinning the tire/wheel assembly above 25 mph (40 km/h) in order to close the sensors internal roll switch for at least 10 seconds.

4. Install the tire on the wheel.

5. Install the tire/wheel assembly on the vehicle.

Figure 2: View of tire pressure monitor sensor and nut.

6. Lower the vehicle.

7. Learn the tire pressure sensors. Refer to tire pressure sensor learn (2007-08). ■

Information for this column comes fom Mitchell 1’s ”Tire Pressure Monitoring Systems Guide” for domestic and import vehicles through 2012. Headquartered in Poway, Calif., Mitchell 1 has provided quality repair information solutions to the automotive industry for more than 80 years. For more information, visit www.mitchell1.com.

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Quik-Link: 800-687-1557 ext. 21146

Products Hitch Hermit under-vehicle hitch storage

New Dick Cepek Fun Country A/T sizes

The Hitch Hermit from AME International LLC is a safe, convenient and affordable hitch storage system designed to store and harbor removable hitches. Ball hitches left in the back of a truck bed or SUV often become a projectile during an accident. AME’s Hitch Hermit prevents these accidents by securely storing the hitch under the vehicle when not in use.

The Hitch Hermit also prevents individuals from walking into hitches left on trucks.

AME INTERNATIONAL LLC Quik-Link: (800) 687-1557, ext. 21171 www.mtdquiklink.com/21171

Dick Cepek Tire & Wheels has 20 new sizes of the Fun Country radial with a hybrid design. Designed with wide lateral and offset tread grooves, they combine with the larger surface area to deliver optimum grip and responsive off-road traction. Stone ejector ribs and ultra-thin sipes resist stone retention and cracking. Other design features are notched shoulder edges, scalloped ribs and an enhanced buttress to maximize off-road traction and prevent lug tearing. The new sizes range from LT/305/70R16 to 37X12.50R20LT. DICK CEPEK TIRE & WHEELS Quik-Link: (800) 687-1557, ext. 21174 www.mtdquiklink.com/21174

Aeolus Tyre TouringAce all-season touring tire Aeolus Tyre Co. Ltd. offers the TouringAce A/S (AG03), a competitively priced allseason tire currently available in the U.S. market in 26 popular and high-volume SKUs. The TouringAce A/S (AG03) offers a quiet and comfortable ride with good traction characteristics. Additionally, the special eco tread compounding and engineering reduces rolling resistance and improves fuel economy. The TouringAce A/S (AG03), rated at 700 A/B UTQG, offers 70,000-mile tread wear expectancy.

AEOLUS TYRE CO. LTD. Quik-Link: (800) 687-1557, ext. 21172 www.mtdquiklink.com/21172

Goodyear Wrangler A/T with Kevlar The Wrangler All-Terrain Adventure with Kevlar from Goodyear Tire & Rubber Co. offers versatility for highway or off-road driving. The tire features a layer of DuPont Kevlar for rugged toughness over pavement, gravel and dirt, plus strong traction through rain and snow. The tire also has open shoulder blocks in the tread, to help clear mud and snow for versatile off-road traction, and traction ridges for traction on soft road surfaces.

It is available in 44 sizes from 16- to 20-inch rim diameters and carries a 60,000-mile tread life limited warranty on standard load and LT sizes.

GOODYEAR TIRE & RUBBER CO. Quik-Link: (800) 687-1557, ext. 21175 www.mtdquiklink.com/21175

Kumho Ecsta PA31 H/P, A/S tire VDO REDI-Sensor TPMS training video Continental Commercial Vehicles & Aftermarket, maker of the REDI-Sensor Multi-Application TPMS Sensor, has released the “Valve Stem Replacement” training video. It shows technicians the proper procedure for maintaining and replacing damaged VDO clamp-in TPMS sensor valve stems and is narrated by Continental Product Manager Steve Landis. The video provides a detailed explanation and demonstration of VDO clamp-in valve stem replacement procedures for the Continental TG1C sensor family. The video gives auto technicians the key information needed to handle faulty, broken or defective TPMS sensors in a step-by-step guide.

CONTINENTAL COMMERCIAL VEHICLES & AFTERMARKET Quik-Link: (800) 687-1557, ext. 21173 www.mtdquiklink.com/21173

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The Ecsta PA31 high-performance, all-season tire from Kumho Tire U.S.A. Inc. is designed for today’s growing number of midlevel sports sedans and coupes.

It features heavy sipe density and large cross grooves that expel water, and the directional tread design offers improved wear. An advanced design and balanced tread compound deliver strong street performance and good mileage, handling and comfort.

It comes with a 50,000-mile limited warranty, and is available in 35 sizes ranging from 185/55R15 to 245/40R18.

KUMHO TIRE U.S.A. INC. Quik-Link: (800) 687-1557, ext. 21176 www.mtdquiklink.com/21176

MTD October 2013

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Products Mac Tools adds 1/2-inch cordless impact wrench Mac Tools has launched a new line of cordless tools that features the BWP050C 1/2-inch drive compact 12V Max impact tool with a die-cast aluminum structure for reduced weight and maximum durability. The tool has a square drive anvil with hog ring for quick and easy socket changes, and the LED work light illuminates the job area. An anti-marring bumper protects the tool and work surface from damage, and a glass-flled nylon body withstands automotive fuids. It is powered by DeWalt’s advanced battery, switch and electronic technology designed to deliver consistent performance.

MAC TOOLS Quik-Link: (800) 687-1557, ext. 21177 www.mtdquiklink.com/21177

BFGoodrich g-Force Rival extreme performance tire The BFGoodrich g-Force Rival extreme performance tire from Michelin North America Inc. has a 200 UTQG rating and features the Performance Racing Core with a reinforced internal structure the reduces sidewall fex for instant steering response. An asymmetric tread with large, solid tread blocks on the outside shoulder optimizes cornering grip.

The Extreme Tread Edge design brings tread compound farther down the shoulder for increased grip in hard cornering and predictable feedback. The Rival is available in 15 sizes with rim dimensions from 15 to 20 inches and 205 to 335 section widths.

MICHELIN NORTH AMERICA INC. Quik-Link: (800) 687-1557, ext. 21178 www.mtdquiklink.com/21178

Myers hand-bendable valve extensions Myers Tire Supply, a division of Myers Industries Inc., has signed an exclusive agreement to be the national distributor of Air-Flexx Tire Valve Extensions, a hand-bendable valve extension made by Glauch Produkt GmbH of Viersen, Germany. The bendable valve extensions eliminate most of the problems related to checking and infating vehicles with dual wheel assemblies, according to Myers. The company says Air-Flexx extensions are rigid enough to be used without a rim holder, clamp or stabilizer.

MYERS TIRE SUPPLY Quik-Link: (800) 687-1557, ext. 21179 www.mtdquiklink.com/21179

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Nexen N’FERA SU4 now available in the U.S. The N’Fera SU4 from Nexen Tire Americas Inc. is now available in the U.S. market exclusively from Tire Dealer’s Warehouse (TDW), a division of the Hercules Tire & Rubber Co. through TDW’s 14 warehouse locations and through Hercules Tire’s network of independent wholesalers. The N’Fera SU4 is an ultra-high performance asymmetric summer tire designed for optimum driving with good drainage and grip on wet surfaces. It is available in 47 sizes ranging from 255/35ZR19 to 175/65R14.

TIRE DEALER’S WAREHOUSE Quik-Link: (800) 687-1557, ext. 21180 www.mtdquiklink.com/21180

Penray Plus Tire Fix features Leak Detective Penray Companies Inc. says its Penray Plus Tire Fix plus emergency tire infator provides motorists with greater value than has been previously available in a tire sealant and infation product. In addition to providing emergency leak repair and tire infation, Penray’s Tire Fix Plus system features Leak Detective, an exclusive feature designed to leave an easily-identifed fuorescent mark at the location where it has sealed a leak. This makes it much easier for the technician to fnd the leak or leaks which are no longer hissing or blowing bubbles.

PENRAY COMPANIES INC. Quik-Link: (800) 687-1557, ext. 21181 www.mtdquiklink.com/21181

Vogue VT378 wheel for Cadillac ATS Vogue Tyre and Rubber Co.’s new VT378 wheel caters to the Cadillac ATS and is available in size 18x8 in two PVD fnishes: white and black.

The VT378 comes with a four-year, 50,000-mile limited ted tread wear “factory match” warranty. It features a hub-centric design and a vehicle-specifc offset. The wheel accepts an original equipment center cap, says Vogue.

VOGUE TYRE AND RUBBER CO. Quik-Link: (800) 687-1557, ext. 21182 www.mtdquiklink.com/21182

MTD October 2013

Power products

What are you looking for?

The following g Power Products offer you information on: Agricu Ag Agri cult ltur ural al tires A lAl l-te t rr te rrai ain ai n ti t re r s Crros o so ove verr ti t res H gh-p Hi gh-per e fo er f rm mance tirres Indu Ind In dus sttri rial all tires L gh Li g t tr t uc u k tires Spor Sp o t--ut or u il ilit ity tires To our urin ing in g ti tire res

Ta Tr aiile lerr ti t re r s Tu Tr uc ck ttiire res s an and Ultr Ul ltr traraah hiigh perrfo form form man a ce tirres e Plus P s, le ear a n mo m re abo b ut sup pplie iers ers and d dis strrib bu uttors s an nd fnd d out ut whi hich ic ch h tirres es are r enngine gi ne eer ered ed to be be eco co-f -fri riien endl d y!

Th T he Po owe w rP Prrod rod oducts uc cts s sec ecti cti tion n als lso so cov ver ers: Vehi Ve hicl c e in nsp pe ec cti tion tion on equ quip pme ment nt W ee Wh el we weig ightts ight W ee Wh els ls An nd — th the he la ate test st in re retr tre ea ad techno te ch hno olo log gy y

Discover what’s new for you in our 2013 Power Products!

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Introducing a competitive truck tire range from Enjoy Tyre Having successfully made its debut at the 2012 SEMA Show, Chinese -based tire supplier Enjoy Tyre will be returning to the 2013 event in Las Vegas with the specifc objective of promoting its private truck tire brand — Routeway.

From the company’s colorful and attractive booth (#42213), Enjoy Tyre will display the Routeway patterns which are designed for different applications.

In particular, the Routeway RW207 Steer and RW105 Drive pattern.

The Routeway RW207 steer tread pattern incorporates a new groove design that extends tread wear along with an increased stiffness in the shoulder rib area that provides impressive ride comfort. The Routeway RW105 drive tire has a multi-pattern design that guarantees excellent traction and braking performance and extended tread blocks to further enhance durable wear resistance. The pattern also incorporates a unique structure amongst the blocks that prevents chunking, chipping and foreign bodies becoming lodged in the tread.

The Routeway truck line currently offers a growing size range with both the RW207 and RW105 truck patterns illustrating Enjoy Tyres total commitment to providing quality tires at a competitive price to the global tire industry.

Enjoy Tyres will be using this year’s SEMA Show to look for and appoint a series of suitably experienced truck tire

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The Routeway RW105 and RW207 truck patterns from Enjoy Tyre distributors to cover the U.S. to promote its Routeway brand. In addition, on display will be Enjoy’s impressive new Enjoyland H/T and A/T lines which will initially be available in ten sizes.

Interested visitors to the booth will also be able to discuss the company’s exciting and progressive plans for the future in North America which includes the current development of a new Routeway passenger car tire covering the HP, UHP and SUV market sectors. It is anticipated that the frst phase of this new project will become available next year.

Enjoy Tyre’s Managing Director, Ms Xu

Quik-Link: 800-687-1557 ext. 21205

Xia concludes, “The 2013 SEMA Show is an extremely important event for the company as we look to further enhance our presence in the North American tire market, particularly with our Routeway truck line. Therefore, Enjoy looks forward to meeting interested visitors at our booth during the event to discuss our products and services in greater detail.”

For further information on Enjoy Tyre, visit: www.enjoytyre.com

MTD October 2013

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To request free product information by phone, call 800-687-1557, enter the extension number listed below, and you will be immediately transferred to the company you want to talk with — it takes only seconds.

To request information online, log on to www. mtdquiklink.com/ plus the corresponding Quik-Link number. You’re just a click away from receiving free information on the new products that interest you.

Advertiser 31 Incorporated ADVICS North America Inc. Aeolus Tires Aftermarket Auto Parts Alliance Inc. American Omni Trading Company American Tire Distributors American Tire Distributors ANCO Atturo Tire Corporation Bartec USA BKT Tires USA Inc. Blackburn’s Hubcap & Wheel Solutions Champion Spark Plug Continental Tire the Americas LLC Continental Tire the Americas LLC Double Coin Tires Falken Tire Falken Tire Federal Tire Federated Auto Parts General Tire GITI Tire (USA) Ltd. Goodride Hankook Tires Hercules Tires Horizon Tire Inc. Horizon Tire Inc. Hunter Engineering Company Independent Tire Dealers Group International Marketing Inc. Kenda USA Kumho Tire USA Marangoni Tread North America Inc. Nexen Tire America Inc. Nitto Tire U.S.A. Inc. Pathway Polymers/TyrFil Perfect Equipment Inc. Plombco Inc. Schrader International SD International SEMA Show Sentaida International Inc. Sumitomo Tire Tire Centers LLC Toyo Tires Toyota Motor Sales U.S.A. Inc. Voxx Road Wheels Voxx Road Wheels Wagner Brake Products

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Your turn

MTD reader asks — Is a government tire repair mandate better than doing what’s right on your own?

Dear Editor: I understand the Rubber Manufacturers Association (RMA) says used tires are unsafe if there is evidence that a tire sealant was used without evidence of a proper tire repair. Many automobiles today are NOT equipped with a spare but rather an extended mobility kit to get you in safely to the nearest tire repair facility. Te problem is that the tire is now deemed as unsafe because the sealant may hide other defects, says the RMA. Please allow me to paint a scenario that will become real to many unsuspecting motorists if they go to place their spare on the vehicle afer the used tire legislation passes.

Let’s say my wife has a fat tire on her new 2013 car while grocery shopping. She now discovers she has a fat tire on the front driver’s side. Smack dab in the middle of the tread, the nail is still there. How lucky can you be considering the circumstance?

She opens the trunk to discover that she has one of those extended mobility kits in place of her spare tire. As a real trooper, she reads the owner’s manual and installs the sealant and compressed air to temporarily fx the tire.

Even though the ice cream she bought is melting, she decides to proceed immediately to your tire shop to be told “sure you will repair it” until your technician discovers that sealant has been applied inside the tire. She explains the tire went fat only a block away, and that she drove right to the dealership. But because you don’t know for sure about the tire’s history, you advise her that she has to purchase a new tire because the old tire may hide other defects or issues.

Since she, too, is concerned about safety, she hesitantly buys a new tire even though she is angry that the reason she has to buy the tire is because she used that “junk” stuf that the car manufacturer provided instead of a real spare. Afer all it’s her safety and she doesn’t want you to violate a law that may cause you to be responsible for a fne anywhere from $500 to $10,000, depending on the state you are located in.

Oh, well, she has one new tire geting ready to be installed until your technician says, “I’m sorry, miss. Your other tire

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has some wear and it may not rotate at the same rpm as the new one, therefore you may have an ABS issue. I can’t be responsible for such an issue of improper braking or possibly sending a vehicle out that I know will turn the TPMS light on (depending on year, make and model). You beter purchase the second tire for safety and liability reasons.”

Begrudgingly she has you put on the second expensive tire and it’s not even fat, wore 50% or by the RMA defnition even unsafe.

Well, life still seems to be good because the melting ice cream has only turned into a milkshake at this point.

Again, your tech goes to put the tires on the vehicle and being an expert in his feld, he discovers the car is an all-wheel-drive vehicle.

Now he explains to her that the front tires won’t rotate with the back and that transmission issues may occur. He now advises her that she should replace the rear tires also in order to prevent future issues with the drive train and you as the tire dealer don’t want to assume the liability, and yet not inform her of what may happen if this isn’t properly taken care of now!

Although your technician is an expert and well trained, my wife probably at this point determines that you are more of a “legal thief” or a “con artist” than a professional tire dealer. Afer all, you can’t even fx a small nail hole. Now the ice cream that took on the form of a milkshake has probably turned into soured milk at this point.

By the way, the next time she goes to Walmart she may buy a tire plug kit and fx it herself instead of spending the hundreds of dollars on tires she was forced to purchase when she only had a simple fnishing nail in the crown of her tire. I’m also prety sure she will have a spare tire on her next car purchase and she won’t trust car companies or tire dealers again.

Could this be real? You bet! Remember, we are all told that this is about safety and has nothing to do with the RMA member companies trying to sell tires or shif the liability on to you as the tire dealer. Besides, who would ever argue that

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Your turn motherhood is bad? Right? Te tire dealer needs to think about the reasons this legislation is being driven by the RMA. He also needs to consider the saying: “Be careful what you wish for... you might just get it.”

Ask yourself if the government mandating how you repair a tire is beter than doing what is right on your own? Will legislation beneft you? Will it stop the unscrupulous dealer?

Is legislation beter than education? Who and how is enforcement going to be applied? Is it done by the matress police?

Talk about fnancial hardship on the consumer. What about excessive used tires being generated? Can our scrap tire landflls handle them?

Tey may not allow you to sell them if it’s been repaired previously. Don’t ever make a mistake when repairing a tire because if applying the tire repair as proposed by the RMA and failing to follow a step such as the use of a repair sealant or maybe using a high rpm bufer and regulating the speed by volume control where the law says you must use a low rpm bufer then you or the technician are now subject to a fne up to $10,000 per occurrence. (I hope you didn’t repair a lot of tires that way).

Tis may sound like nonsense but remember our government is now in your business and they may not understand the slight variations that you as a professional tire dealer do.

Afer all, they aren’t allowing you to think, but rather they will now tell you how you are going to do it!

I’m simply saying it’s a lot deeper than it appears on the surface and it needs to be thoroughly thought out before it becomes law! Something to consider.

Philip Nigh, General Manager/Sales Elgi Rubber Co. Luling, Texas

Due to liability concerns, we’ve stopped selling used tires over six years old Dear Editor: We, Tires Unlimited Automotive Services in Port Washington, Wis., have stopped selling used tires over six years old based on their serial number.

However, we do not have a policy of strongly recommending the removal of tires over six years old. Liability concerns for frst issue/lack of industry direction for the second.

Chuck Prendergast, Owner Tires Unlimited Automotive Services Port Washington, Wis.

disparity is far more than the one item you quoted. Customers traveling to the United States to purchase all manner of goods, including tires, is a huge concern for all retailers in Canada.

Te closer to the border, the bigger the problem.

I do enjoy your articles.

Ed King, Tames OK Tire & Service London, Ontario, Canada

Park customers’ vehicles near your showroom windows to help prevent thef Dear Editor: Concerning Managing Editor Lori Mavrigian’s recent blog “Protecting your property — and your customers’ on your website, when leaving vehicles out for afer-hours pick up, we back up the vehicle near the showroom windows so that a prospective thief will not know if someone is inside and able to see them.

An added beneft is that it allows our front desk camera to see them in addition to the exterior cameras.

Ron Fogal, General Manager Pumpelly Tire Co. LLC Lake Charles, La.

MTD’s National Advisory Council members speak out We asked members of our National Advisory Council what’s on their mind. Here are two of their responses:

We will upgrade our current aligner to accommodate more intuitive systems on newer makes/models of passenger cars and light trucks to include, but not limited to, Electric Power Steering (EPS) and Electronic Stability Control (ESC).

Tripp Lee, General Manager Frasier Tire Service Sumter, S.C.

If tire manufacturers would put an ounce of efort toward consumer tire awareness, we would all beneft.

Plus, manufacturers need to lower their prices to be competitive. Instead, they have chosen to make their programs almost impossible to understand with all their special discounts and programs.

Tey should stick to the KISS strategy (Keep It Simple, Stupid).”

Jef Cohen, Co-owner Traction Wholesale Center Bensalem, Pa.

Customers traveling to U.S. to make purchases is a huge concern in Canada Dear Editor: I’d like to make a couple of comments concerning your July 2013 editorial, “Oh, Canada.”

First, our prime minister is elected, and second, the price

If you are interested in joining our National Advisory Council, we’d love to hear fom you. Send an email to Editor Bob Ulrich at bob.ulrich@bobit.com or call (330) 899-2200.-Ed.

Join Modern Tire Dealer’s National Advisory Council

Each month, Modern Tire Dealer is guided and infuenced by a select group of readers — members of our National Advisory Council. Tese members’ opinions are the heart of the monthly Your Marketplace column, compiled by industry analysts Nick Mitchell and John Healy. If you’d like to join this prestigious group, please let us know. We’d love to hear from you. Contact Editor Bob Ulrich at bob.ulrich@bobit.com or call (330) 899-2200, ext. 11.

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